Oil rose on Thursday as ministers of the OPEC countries revised their supply agreement and agreed to increase production from January 1 by 500,000 barrels per day. On the January Nymex contract, U.S. light crude oil (WTI) gained 0.8 percent to $45.64 a barrel, while the January delivery Brent contract advanced 1 percent to $48.71.
This rise in production is smaller than initially anticipated (2 million barrels a day) and is an appropriate solution, even though investors have been hoping to keep the status quo for at least three months past the end of 2020. On Thursday, Russian Energy Minister Alexander Novak said that OPEC members had agreed to meet on a monthly basis to change their policies beyond January, but that the monthly production rise would not exceed 500,000 barrels a day.
Gold rebounded for the third session on Thursday, after dropping almost 5 percent in six days, which sent it back to a five-month low. On Thursday, yellow metal ounces recovered 0.6 percent to $1,841.10 for the Comex futures contract in February, benefiting from cheap purchases and a continuing fall in the dollar, which makes purchases of gold cheaper.
Anticipating a new economic stimulus package in the US, the dollar index that measures its evolution against a basket of six currencies including euro, pound sterling, yen, Swiss franc, Canadian dollar and Swedish krona, fell 0.5 percent to 90.67 points. Euro climbed 0.27 percent to $1.2148, the highest since April 2018. The yield on the 10-year T-Bond dropped 3 basis points to 0.91 percent on the U.S. government bond market.
On the economic front, also investors appreciated news of lesser unemployment listings in the country as well as bipartisan efforts towards proposal of approving new financial support plan. The $908 billion package is likely to be approved and implemented before Christmas.