Oil price rise runs out of steam
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- 06 Dec 2020
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The oil price rally finally appears to be running out of steam. Brent crude is currently down 2% at $53.82, while US crude has fallen 2.3% to $50.60.
It may not seem a big fall, but it's the first time the price has dropped in almost a week. In fact the price of a barrel has risen over 15% since Opec's 30 November meeting when the oil cartel agreed to curb production to try and boost prices.
Analysts say data showing crude production rose last month is contributing to fears Opec's pledge will have little impact.
"Adherence to assigned Opec quotas is apt to be limited and enforcement of such nearly impossible.
"With most of the planned reduction falling on the shoulders of the Persian Gulf producers, we look for other Opec members to virtually ignore assigned quotas," said Jim Ritterbusch, president of energy advisory firm Ritterbusch & Associates.
