Oil prices soared higher on Friday with trading around a 9-month high and are on track for a five-week consecutive rise after OPEC + results.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies including Russia, OPEC + have agreed to reduce production cuts by 500,000 barrels a day starting January 2021.
This makes the reduction to be followed by the producing countries is as much as 7.2 million barrels per day, much higher than the previously decided 5.7 million barrels per day.
The cuts were implemented to address the problem of weak crude oil demand after being affected by the second wave of coronavirus worldwide.
The latest OPEC + results clearly provide relief for the oil market as well as support for the Covid-19 vaccine which will be distributed soon before the end of the year.
In the Asian session, the Brent crude benchmark rose 1.9% to $ 49.64 a barrel, while the US WTI traded up 1.8% at $ 46.47 a barrel.
However, the cartel has not yet decided on when the cut will be implemented. Russian Energy Minister Alexander Novak suggested that they hold a monthly meeting to decide whether the agreement would be extended after January.
