Hopes on Covid-19 vaccine helped keep both the Brent and the WTI benchmarks on track to increase over a fifth in November. Credit: Schmucki from Pixabay.

Crude oil prices have slipped by 2% as investors await a decision by oil-producing group OPEC+ whether it would extend large output cuts to balance oil prices in the global markets.

However, hopes on a Covid-19 vaccine helped keep both the Brent and the WTI benchmarks on track to increase over a fifth in November.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Brent crude futures slipped $1.01 to $47.17 a barrel, while the US West Texas Intermediate (WTI) crude futures fell $0.86 to reach $44.67 a barrel, Reuters reported.

Analysts and traders also expect the Organization of the Petroleum Exporting Countries (OPEC), and allies, including Russia, together known as OPEC+, to postpone next year’s planned increase in oil supply to support prices amid a second wave of the virus.

Four OPEC+ sources told Reuters that the group held an initial round of discussions on 29 November, but did not reach any consensus on output policy for 2021 ahead of key meetings on 30 November and 1 December.

Goldman Sachs analysts stated: “While we base-case a three-month delay to prevent a return to a global oil surplus through 1Q21, not all producers appear on board.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The winter wave of Covid-19 infections is expected to dent global fuel demand by 3Mbpd, the analysts said. This would ‘only partially be balanced by heating and restocking demand’ in Asia.

If the OPEC+ denies extending cuts, ANZ estimated that the oil market surplus could run to records highs of 1.5Mbpd to 3Mbp in the first half of next year.

Meanwhile, the world’s second-largest economy China expanded factory activity at a faster pace in more than three years in November. It is on track to be the first major economy to fully recover from the impact of the Covid-19 crisis.