After an OPEC deal to not boost supply as early as February 1, oil jumped 5 percent, amid uncertainty linked to the revival of the coronavirus outbreak. Since that declaration of an agreement by OPEC to expand its supply limits, oil prices soared. The price of WTI’s U.S. light crude oil soared 4.9% to $49.93, touching $50 a barrel for Nymex’s February futures contract, while North Sea Brent also rose 4.9% to $53.60. By 2020, as a result of declining demand related to the Covid-19 crisis, crude oil prices had lost 20 percent.
After two days of negotiations, OPEC and its partners decided that their supply of oil would continue to be reduced beyond 1 February, when they originally intended to increase their output by 500,000 barrels a day. Saudi Arabia and its OPEC partners, despite Russia and Kazakhstan’s resistance, ensured that production goals were not updated upwards in February. Riyadh also decided to arbitrarily cut supply to compensate for the Moscow prediction of a small rise.
With much fanfare, Gold resumed its start to the year, backed by a return to global health issues, political instability in the United States, and a persistently weak dollar that benefits imports of commodities. On Tuesday, after jumping 2.7 percent on Monday, the first session of 2021, the price of an ounce of yellow metal advanced 0.41 percent to $1,952.70 an ounce for the February futures contract on the Comex.
IN the presence of unpredictable health backdrop, mixed growth estimates were also issued by the World Bank on Tuesday. According to the organization, the global economy is predicted to expand by 4 percent in 2021 after contracting by 4.3 percent last year, which nevertheless forecasts that if cases of Covid-19 contamination escalate and delays in vaccine delivery, this year’s growth could be reduced to just 1.6 percent. Conversely, according to the WB, successful pandemic prevention and a quicker vaccine process could drive global growth up to almost 5 percent.