Oil prices edged higher in the morning of the Asia trading session on Friday after OPEC and allies agreed to a gradual increase in production output in January.
West Texas Intermediate (WTI) rose $0.71/bbl or 1.56% to $46.35 per barrel, while the international benchmark Brent crude rose $0.78/bbl or 1.60% to $49.49 per barrel.
Yesterday, OPEC+ agreed to increase its oil output by 500,000 barrels per day (bpd) in January 2021. It means the group would move to output curbs by 7.2 million bpd early next year, compared with current cuts of 7.7 million bpd.
The meeting decided to extend the compensation period until the end of March 2021, to ensure full compensation from all participating countries that overproduced in previous months, the statement added.
The increase reflected that the group is betting on the economic recovery from the coronavirus outbreak that dropped global oil consumption in 2020.