OPEC Agreement Is Reached After Saudi Arabia And The UAE Compromise On A Production Deal

FILE PHOTO © Reuters / Christian Hartmann  

CNBC/Reuters: Oil prices drop after Saudi-UAE reach output compromise 

Oil prices dropped on Wednesday after Reuters reported Saudi Arabia and the United Arab Emirates had reached a compromise that should unlock an OPEC+ deal to boost global oil supplies as the world recovers from the coronavirus pandemic. 

The benchmarks extended their losses after government data showed implied U.S. gasoline demand declining considerably last week. 

While the U.S. Energy Information Administration said crude stockpiles declined more than expected, in their eighth consecutive draw, the drawdown was overshadowed by lagging gasoline demand. 

“After last week’s emphatic print, implied gasoline demand has dropped off considerably, resulting in a build to gasoline inventories,” said Matt Smith, director of commodity research at ClipperData.  

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Update #1: Oil Falls As Saudi Arabia And UAE Compromise On Deal (OPilPrice.com)  

Update #2: Oil Declines With Stronger Dollar and Looming OPEC+ Supply (Bloomberg) 

WNU Editor: Unless the new Covid-19 variants lock down economies, I still expect oil prices to rise .... Goldman Bullish On Oil Despite Saudi-UAE Agreement (OilPrice.com)