{"id":293473,"date":"2020-12-04T05:54:32","date_gmt":"2020-12-03T18:54:32","guid":{"rendered":"https:\/\/www.gomarketingteam.com\/articles\/opec-and-allies-reach-a-compromise\/"},"modified":"2021-02-19T12:13:04","modified_gmt":"2021-02-19T01:13:04","slug":"opec-and-allies-reach-a-compromise","status":"publish","type":"post","link":"https:\/\/www.gomarkets.com\/en\/articles\/geopolitical-events\/opec-and-allies-reach-a-compromise\/","title":{"rendered":"OPEC and allies reach a compromise"},"content":{"rendered":"<blockquote><p><strong>By Deepta Bolaky<\/strong><br \/>\n<img style=\"float: left; width: 20px; padding-top: 4px;\" src=\"https:\/\/www.gomarkets.com\/wp-content\/uploads\/2018\/08\/twitter.png\" \/>\u00a0<a href=\"https:\/\/twitter.com\/DeeptaGOMarkets\">@DeeptaGOMarkets<\/a><\/p><\/blockquote>\n<p>The oil industry has remained pressurized by a supply glut and the ongoing uncertainty on the demand outlook with respect to the structural changes in the energy market and the pandemic. The recent vaccine updates and hopes that the pandemic may soon be under control, is providing support to a fundamentally battered energy market. As the year comes to an end, oil traders were eyeing OPEC and its allies\u2019 commitments to production cuts for direction.<\/p>\n<p>The 12<sup>th<\/sup> OPEC and non-OPEC Ministerial Meeting was initially delayed as OPEC+ needed more time to reach a deal which kept the oil traders on edge. After tough negotiations, the meeting concluded on a positive note on Thursday:<\/p>\n<ul>\n<li>The Meeting reaffirmed the continued commitment of the participating countries to a stable market.<\/li>\n<li>The Meeting emphasized that it was vital that participants, and all major producers, remain fully committed to efforts aimed at balancing and stabilizing the market. It noted that renewed lockdowns, due to more stringent COVID-19 containment measures, continue to impact the global economy and oil demand recovery, with prevailing uncertainties over the winter months.<\/li>\n<li>In light of the current oil market fundamentals and the outlook for 2021, the Meeting agreed to reconfirm the existing commitment from 12 April 2020, then amended in June and September 2020, to gradually return 2 mb\/d, given consideration to market conditions.<\/li>\n<li>Beginning in January 2021, participating countries decided to voluntary adjust production by 0.5 mb\/d from 7.7 mb\/d to 7.2 mb\/d.<\/li>\n<\/ul>\n<p>OPEC and its allies expect stockpiles to fall in the first quarter by delaying the return on supply compared to the original plan.<\/p>\n<p><img loading=\"lazy\" class=\"alignnone wp-image-268371\" src=\"https:\/\/www.gomarkets.com\/au\/wp-content\/uploads\/2020\/12\/Picture1.jpg\" alt=\"\" width=\"650\" height=\"461\" \/><\/p>\n<p>Crude oil prices firmed higher buoyed by the compromise deal despite this week\u2019s bearish oil reports:<\/p>\n<ul>\n<li>The United States EIA Crude Oil Stocks Change registered at -0.679M above expectations (-2.358M) on November 27.<\/li>\n<li>API reported a much larger-than-expected inventory level of 4.146M.<\/li>\n<\/ul>\n<p>As of writing, WTI Crude oil (Nymex) and Brent Crude (ICE) were trading at around $46.40 and $49.67 respectively and the US oil is poised to post its fifth weekly gain.<\/p>\n<p><img loading=\"lazy\" class=\"alignnone wp-image-268372 size-full\" src=\"https:\/\/www.gomarkets.com\/au\/wp-content\/uploads\/2020\/12\/Picture2.jpg\" alt=\"\" width=\"606\" height=\"365\" \/><\/p>\n<p>The vaccine updates and OPEC deal have helped the crude oil prices to pare majority of the losses seen during COVID March lows.<\/p>\n<p><img loading=\"lazy\" class=\"alignnone wp-image-268373 size-full\" src=\"https:\/\/www.gomarkets.com\/au\/wp-content\/uploads\/2020\/12\/Picture3.png\" alt=\"\" width=\"607\" height=\"327\" \/><br \/>\nSource: GO MT4<\/p>\n<p><strong>By Deepta Bolaky<\/strong><br \/>\n<img style=\"float: left; width: 20px; padding-top: 4px;\" src=\"https:\/\/www.gomarkets.com\/wp-content\/uploads\/2018\/08\/twitter.png\" \/>\u00a0<a href=\"https:\/\/twitter.com\/DeeptaGOMarkets\">@DeeptaGOMarkets<\/a><\/p>\n<p><a href=\"https:\/\/www.gomarkets.com\/forex-education-courses\/\" target=\"_blank\" rel=\"noopener noreferrer\"><br \/>\n<\/a><a href=\"\/forex-education-courses\/\" target=\"_blank\" rel=\"noopener noreferrer\"><img loading=\"lazy\" class=\"alignnone\" src=\"https:\/\/www.gomarkets.com\/wp-content\/uploads\/2019\/02\/Next-Steps-Blog-Bottom-Banner.jpg\" alt=\"\" width=\"942\" height=\"122\" \/><\/a><\/p>\n<p style=\"font-weight: 400;\"><em>Disclaimer:\u00a0\u00a0The articles are from GO Markets analysts, \u00a0based on their independent analysis or personal experiences. Views or opinions or trading styles expressed are of their own; \u00a0should not be taken as either representative of or shared by GO Markets. \u00a0Advice (if any), \u00a0are of a \u2018general\u2019 nature and not based on your personal objectives, financial situation or needs.\u00a0 You should therefore consider how appropriate the advice (if any) is to your objectives, financial situation and needs, before acting on the advice. \u00a0If the advice relates to acquiring a particular financial product, you should obtain and consider the Product Disclosure Statement (PDS) and Financial Services Guide (FSG) for that product before making any decisions.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Deepta Bolaky \u00a0@DeeptaGOMarkets The oil industry has remained pressurized by a supply glut and the ongoing uncertainty on the demand outlook with respect to the structural changes in the energy market and the pandemic. The recent vaccine updates and hopes that the pandemic may soon be under control, is providing support to a fundamentally [&hellip;]<\/p>\n","protected":false},"author":47,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[2817,2875],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v16.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>OPEC and allies reach a compromise - GO Markets<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.gomarkets.com\/en\/articles\/geopolitical-events\/opec-and-allies-reach-a-compromise\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"OPEC and allies reach a compromise - GO Markets\" \/>\n<meta property=\"og:description\" content=\"By Deepta Bolaky \u00a0@DeeptaGOMarkets The oil industry has remained pressurized by a supply glut and the ongoing uncertainty on the demand outlook with respect to the structural changes in the energy market and the pandemic. 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