LONDON – Crude oil prices fell 1.5% to steady at around $53/bbl on Friday after the biggest weekly rally since 2009 following OPEC’s decision this week to cut crude output, according to a Reuters report.
Market focus will now shift to the implementation and impact of OPEC’s first production agreement since 2008, which will be joined by non-OPEC producers.
Front-month Brent crude futures were down 81 cents from their last settlement at $53.12/bbl.
US West Texas Intermediate (WTI) futures were at $50.40/bbl, down 65 cents.
The Organization of the Petroleum Exporting Countries, which accounts for one-third of global oil supply, will reduce production starting in January by 1.2 MMb/d, or more than 3%, to 32.5 MMb/d.
As part of the OPEC deal, Russia has promised to gradually cut its crude output by up to 300,000 b/d in the first half of 2017. Russia and other non-OPEC producer are set to meet with OPEC on Dec. 9.
With cuts only being implemented next year against end-2016 levels, analysts said there was still a possibility that oversupply, which has halved oil prices since 2014, will remain in place next year.