Oil trades near eight-month high after OPEC+ compromise deal
Oil traded near an eight-month high after OPEC+ reached a compromise deal to gradually taper output cuts from the start of next year.
Futures edged higher in New York after rising 0.8% on Thursday and are set to eke out a modest fifth weekly gain. The group will start adding 500,000 barrels a day of crude to the market in January and ministers will then hold monthly meetings to decide on the next steps. The deal avoided a breakdown of OPEC+ unity after a tense split between Saudi Arabia and the United Arab Emirates.
The oil futures curve, meanwhile, is signaling tighter supply and a brighter long term outlook. The prompt timespread for global benchmark Brent moved further into backwardation on Thursday, while the nearest December contract is trading at a higher level than the same contract for December 2022.
