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OPEC+ failed to reach a consensus yet regarding the February output

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Miguel A. Rodriguez
Miguel A. Rodriguez
06 January 2021
OPEC and Russia divided once again over how much oil is needed right now

New year, new challenges for the Organization of the Petroleum Exporting Countries.  Members of OPEC and Russia gathered today to discuss whether to increase the output or not, as multiple countries are back in lockdown amid the rising number of COVID-19 infections.

While Saudi Arabia pledged against an increase, Russia called for higher production, citing a recovery in demand. According to documents published on January 4, OPEC+ members are trying to work around the idea of a 500,000 barrel per day output cut for February. Still, they are also considering keeping the production level steady at half of million barrels per day.

Given the uncertainties caused by the pandemic, most member countries are in favor of production cuts for February, with Prince Abdulaziz bin Salman stating: "I urge you today not to take for granted the progress we have made as a group over the past year. Do not put at risk all that we have achieved for the sake of an instant, but illusory, benefit."

Yesterday, after the initial meeting was over, Brent Oil price dropped 1.4%. However, it managed to recover some of its losses. At the moment of writing is trading at $51.60 per barrel.

The talks resumed today at 2:30 PM GMT.

Stay tuned for more!

Sources: investing.com, cnn.com

This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.