Oil extends rally as momentum builds for OPEC+ output hike delay

Oil extended its rally on growing expectations that OPEC and its allies will postpone plans to restore some supply to the market in January.

File photo: A maze of crude oil pipes and valves. (REUTERS)
File photo: A maze of crude oil pipes and valves.

Futures in New York added 0.6%, after rising 2.9% on Monday -- the biggest gain in more than three weeks. Russian Energy Minister Alexander Novak met with the country’s producers on Monday to discuss the possibility of delaying an easing of output cuts by three months. The OPEC+ alliance was already considering deferring the planned 2 million barrel-a-day increase as crude prices faltered amid renewed lockdown measures to curb the spread of coronavirus.

Still, the producer bloc is seemingly undermining its own effort to shore up world oil markets, with output increasing in member countries Libya, Iraq and Nigeria. Output across OPEC countries jumped by 470,000 barrels a day in October, according to a Bloomberg survey.

Also check these Vehicles

Find more Cars
Mahindra Ekuv100 (HT Auto photo)
₹ 8.25 - 10 Lakhs* *Expected Price
View Details
Mahindra S204 (HT Auto photo)
₹ 12 Lakhs *Expected Price
View Details
Rolls-royce New Ghost (HT Auto photo)
₹ 6.95 - 7.95 Cr* *Expected Price
View Details
Ferrari Purosanguesuv (HT Auto photo)
₹ 3 - 3.35 Cr* *Expected Price
View Details
Tata Safari 2023 (HT Auto photo)
₹ 16 - 24 Lakhs* *Expected Price
View Details
Mg 4 Ev (HT Auto photo)
₹ 30 - 32 Lakhs* *Expected Price
View Details

China raised the quota for use of overseas oil by non-state entities next year by more than 20%, presenting a bright spot for an otherwise precarious demand picture. Saudi Arabia directed at least 1.8 million barrels a day of crude oil to China in October -- the highest since April.

Also Read : Oil set for worst month since March as coronavirus revival cuts travel

However, the second wave of the virus around the world could see global oil demand drop to 88 to 89 million barrels a day, down 11% or 12% from last year, Trafigura Group boss Jeremy Weir said at a conference.

Earlier Monday, U.S. crude hit five-month lows under $34 a barrel amid the double whammy of rising Libyan supply and a bleak demand outlook. The futures curve is signaling further weakness, with the spread between WTI’s nearest contracts deepening into its widest contango since early September. Brent’s prompt spread also weakened on Monday.

Further market turbulence looms this week as Americans head to the polls Tuesday in an election that could reshape U.S. policy on everything from fiscal stimulus to Iran and fracking.

First Published Date: 03 Nov 2020, 16:37 PM IST
Shopping Bag Shop Now
1% OFF
Godrej aer O – Hanging Car Air Freshener | Car Accessories | Cool Aqua (7.5g)
Rs. 98 Rs. 99
70% OFF
VENO Portable High Power 2 in 1 Car Vacuum Cleaner | USB Rechargeable Wireless Handheld Car Vacuum Cleaner Traveling, Camping Reusable and Sustainable (2 in 1 Vacuum Cleaner)
Rs. 899 Rs. 2,999
65% OFF
Ambrane 38W Fast Car Charger with Dual Output, Quick Charge 3.0 and Power Delivery, Type-C & USB Port, Wide Compatibility for Smart Phones (RAAP C38 A, Black)
Rs. 349 Rs. 999
68% OFF
PUNZONE Car Body Scratch Remover - Scratch Repair Polishing Wax Kit Sponge Body Compound Cream Wax, Car Body Compound Scratch Remover
Rs. 289 Rs. 898

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
By clicking "View Offers" you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.