On Monday, oil prices made a big difference, finishing up nearly 3 percent after a decrease of 2.5 to 3 percent at the beginning of the day, dropping to the lowest in 5 months.
The December contract for U.S. light crude (WTI) picked up 2.9 percent to $36.81 on Nymex on Monday night at the close of Nymex, while the December delivery contract for Brent recovered 2.7 percent to $38.97.
The U-turn has been prompted by the hope that OPEC+ will delay the 1.9 million barrels per day rise in production planned for January 1. A meeting was held on Monday between Alexander Novak, the Russian energy minister, and the representatives of the Russian oil groups, according to sources cited by ‘Reuters’ and Bloomberg, to discuss the evolution of the OPEC+ agreement. At the end of the conference, however, no information was disclosed.
The two oil varieties dropped by 11 percent for WTI and 8.5 percent for Brent last week, exposing the possibility of a slowdown in the European economy in the face of the second wave of Covid-19, leading to country-wide lockdowns in Germany , France, and soon in the UK.
Russian President Vladimir Putin had already said on 22 October that he was open to the postponement of the quota increase. On 1 January OPEC+, which is currently experiencing a decrease of 7.7 mbd, was due to drop to 5.8 mbd (or -1.9 mbd). But the Europe’s second coronavirus wave is worsening sharply which is now raising concerns of a relapse in the economy and a fall in crude oil demand.