OPEC+ agrees on 1 mbpd of extra supply cuts – report | Forexlive

This is a pretty big cut. It’s not clear from the report how long the agreement is for. If it’s through Q1, that would be extra bullish.

OPEC+ is showing unprecedented unity and discipline right now but history shows there is a time bomb there and now there’s more than 5 million barrels per day of spare capacity out there. That likely caps oil near $100.

More details are coming now:

• Algeria agrees to cut output by additional 50K bpd
• Saudi to cut by 1 mbpd bpd (same amount as before via the lollypop cut)
• Russia to cut by 500k bpd
• Others to cut ‘more’