Crude oil futures pared early losses and ended slightly lower on Monday, as traders looked ahead to the outcome of a meeting of OPEC and its allies.
The OPEC+, among other things, will consider extending large output cuts that are currently in place. The group had previously agreed to raise output by 2 million barrels per day in January, but the plan might be put on hold due to demand decline.
The OPEC today warned that the "immense challenges" caused by the coronavirus pandemic will likely persist in 2021.
The OPEC president and Ageria's energy minister said, "The shock to the oil industry is massive and its severe impacts will likely reverberate in the years to come."
Although Algeria's state news agency APS has reported that OPEC members had reached a consensus to extend the production curbs for three months, further talks will be held on Tuesday to convince members of the OPEC+ alliance at their meeting on Tuesday to back the policy.
West Texas Intermediate Crude oil futures for January ended down $0.19 or about 0.4% at $45.34 a barrel.
Brent crude futures for January settled at $47.54 a barrel, losing $0.64 or about 1.33%, on the expiration day. The contracts for February were down $0.48 at $47.77 a barrel.
Despite suffering a loss today, WTI futures gained almost 20% in November, the strongest monthly returns since May, thanks to rising optimism about potential coronavirus vaccines.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2167989/
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