Crude futures closed higher on Tuesday (Jan. 4) after the Organization of Petroleum Exporting Countries and its allies OPEC+ decided to stick to the original agreement.
- WTI crude futures were up 91 cents, or 1.2 percent, at $76.99 a barrel.
- BRENT crude futures were up $1.02, or 1.3%, to close at $80 a barrel.
Crude oil futures rose after OPEC+ decided to stick to the existing agreement to increase oil production by 400,000 barrels per day in February. This was decided at yesterday’s production policy meeting. The decision is a sign that OPEC+ continues to believe in demand. The demand forecast was somewhat dampened towards the end of last year by the IEA, which predicted an oil surplus for 2022.
The next OPEC+ meeting will be held on February 2 to discuss production policy for March.
Investors are waiting for crude oil inventory figures from the U.S. Energy Information Administration (EIA) today.
The Spot Market is Open
Wednesday, January 5, 2021