New Zealand markets open in 1 hour 15 minutes
  • NZX 50

    13,333.43
    +221.23 (+1.69%)
     
  • NZD/USD

    0.7189
    -0.0031 (-0.43%)
     
  • ALL ORDS

    7,078.90
    -28.20 (-0.40%)
     
  • OIL

    51.98
    -1.15 (-2.16%)
     
  • GOLD

    1,855.50
    -10.40 (-0.56%)
     

Oil rises again after OPEC+ supply compromise

Oil prices jumped around 2% on Friday (November 4), heading for a fifth week of gains.

It comes as major producers agreed on a compromise to continue some cuts to production.

They have been trying to find a way to cope with coronavirus-hit demand.

Although the cuts fell short of expectations, the market took it as good news.

Brent was up 1.9%, in early deals.

West Texas Intermediate rose 1.6%, having risen nearly 1% in the previous session.

OPEC and Russia on Thursday agreed to ease deep oil output cuts from January by 500,000 barrels per day.

It means the Organization of the Petroleum Exporting Countries and Russia, a group known as OPEC+, are set to reduce production by 7.2 million bpd, or 7% of global demand from January, compared with current cuts of 7.7 million bpd.

But they failed to come to a compromise on a broader policy for the rest of next year.

In a report after the decision though Goldman Sachs said the move "reinforces our conviction in a steady and sustainable rally in oil prices through 2021"

Also supporting prices on Friday, a bipartisan $908 billion aid plan gained momentum in the U.S. Congress on Thursday.