Oil prices slid more than 1% on Friday, adding to overnight declines, on worries that refineries will take time to resume operations after the big freeze in the US South, creating a gap in demand, while OPEC+ supplies were expected to rise.
Iranian Minister of Oil Bijan Namdar Zanganeh said that the crude oil output cuts will decrease from previously-agreed amount of 7.7 million barrels per day (mbd) to 7.2 mbd in January 2021, adding it was a wise decision.
Oil prices jumped around 2% on Friday, heading for a fifth week of gains, as major producers agreed on a compromise to continue some cuts to production to cope with coronavirus-hit demand even though these fell short of expectations.
Oil prices extended gains on Monday as traders eyed a recovery in crude demand thanks to successful coronavirus vaccine trials, although prices were contained by renewed lockdowns in several countries.
Oil prices climbed on Monday, recouping some losses from the previous session as hopes that OPEC+ will hold current output curbs offset concerns about weaker fuel demand due to rising COVID-19 cases and higher production from Libya.
OPEC and allies such as Russia will ease record oil supply curbs from August as the global economy slowly recovers from the coronavirus pandemic, Saudi Energy Minister Prince Abdulaziz bin Salman said on Wednesday.
A former Iranian OPEC governor rejected claims by authorities in crude-producing countries that Tehran’s output of oil has exceeded a limit set by the Organization of Petroleum Exporting Countries and allies, a grouping known as OPEC+.