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Oil Moves Up towards $50

Friday 4 December 2020

LONDON (Reuters) — Brent crude oil futures rose to just under $50 a barrel on Friday as major producers agreed on a compromise to increase output slightly from January but continue the bulk of existing supply curbs to cope with coronavirus-hit demand.

Brent was up ¢53 $49.24 a barrel by 10:34 GMT after hitting its highest since early March at $49.92. WTI rose ¢47 to $46.11 a barrel. Both benchmarks are set for a fifth straight week of gains.

OPEC+ had been expected to continue existing cuts until at least March, after backing down from plans to raise output by 2 mln bpd.

The premium of Brent crude futures for nearby delivery to future months is at its highest since February, a structure called backwardation, which usually points to supplies tightening up and suggests receding fears of a current glut.


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