Oil pared gains late in the session as protests in Washington overtook the U.S. Capitol, overshadowing a draw in U.S. crude inventories and Saudi Arabia’s surprise pledge to unilaterally cut output in the next two months.
Oil steadied in Asia after surging to a 10-month high on Saudi Arabia's pledge to cut an extra 1 million barrels a day of crude output in February and Marc.
Oil crests $50 on new Saudi production cuts By Sharon Cho and Alex Longley on 1/6/2021
(Bloomberg) Oil touched a 10-month high above $50 a barrel after Saudi Arabia pledged to cut an extra 1 million barrels a day of crude output in February and March.
Futures in New York added 0.9% after the kingdomâs surprise move drove prices up 4.9% on Tuesday. OPEC+âs agreement, which will see most producers keep output steady while the Saudis cut, prompted a sharp rally in the structure of the oil futures curve as traders anticipated lower supply in the coming months.
The Saudi decision, which Russiaâs deputy prime minister called a ânew year giftâ to the market, comes as governments enforce more stay-at-home orders and travel restrictions to curb a surge in virus infections. Goldman Sachs Group Inc. said the Saudi move reflects expectations for weaker oil demand, cutting its consumption forecasts for January and February.
Oil pared gains late in the session as protests in Washington overtook the U.S. Capitol, overshadowing a draw in U.S. crude inventories and Saudi Arabia’s surprise pledge to unilaterally cut output in the next two months.