OPEC Pledges to Support Crude Market
Crude is down this morning and is feeling some pressure from the concern around demand loss from rising coronavirus cases. Reports on Monday showed that coronavirus around the world topped over 40 million cases. This second wave of cases in North America and Europe is triggering various degrees of lockdowns and restrictions which may impact fuel demand.
OPEC met on Monday and reiterated that it would support a balanced market. While Russian Energy Minister Alexander Novak said they currently are planning to reduce supply restrictions as planned in January, Saudi Arabia stated, “no one should doubt the group’s commitment to providing support.” In addition, three separate sources from member countries said that output cuts planned for January could be reversed if market conditions made it necessary.
In early trading today, crude prices are down. Crude is currently trading at $40.46, a loss of 37 cents.
Fuel prices are flat this morning. Diesel is trading at $1.1556, a loss of 0.3 cents. Gasoline is trading at $1.1656, a gain of 0.3 cents.
This article is part of Daily Market News & Insights
Tagged: coronavirus, lockdowns, opec, Supply
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