OPEC and allies finalize deal to restore oil production through 2022
Jul. 18, 2021 10:45 PM ETEnergy Select Sector SPDR ETF (XLE), USOUCO, XLE, OIH, VDE, USO, XOP, BGR, ERX, BNO, GUSHBy: Carl Surran, SA News Editor23 Comments
- OPEC+ agrees to restore all production cuts the group made when the COVID-19 pandemic began, raising output by 400K bbl/day each month through the end of 2022, resolving an internal dispute that had tested the unity of the alliance.
- The deal will give Saudi Arabia, the United Arab Emirates, Iraq, Kuwait and Russia higher baselines against which their production cuts are measured from May 2022.
- The gradual response reflects the uncertain global demand outlook, as much of the developing world, where demand growth for oil had been strongest pre-pandemic, is still fighting surging COVID-19 cases.
- Brent crude -0.4% in early Asian trading after losing 2.6% last week.
- ETFs: XLE, USO, UCO, XOP, VDE, GUSH, OIH, ERX, BGR, BNO
- WTI crude oil fell 3.7% last week to $71.81/bbl in anticipation of a deal, its biggest weekly decline for a front-month contract since late March 26.