Oil prices rallied on Thursday after the Organization of the Petroleum Exporting Countries and its allies hinted at the possibility of undoing its planned boost output.
- The West Texas Intermediate jumped over $68 a barrel after closing Thursday higher, following the OPEC+ decision. Crude has posted a steep decline since later October, as countries plan to tap their reserves.
- The development comes as OPEC+ agreed to boost output by 400,000 barrels a day in January but essentially placed a floor as it noted the option to adjust plans even at short notice.
- Analysts believe the bottom may have already been reached on Thursday unless negative news on the new COVID-19 Omicron variant will be released. The increased volatility has driven oil traders to the exit, with open interest in the futures market falling to historic lows.
The latest OPEC+ decision is seen as an unusual step, given the need to balance supplies and demand amid the detection of the Omicron variant.
WTI is up 2.66%, Brent up 3.00%, and Crude up 1.45%.