Picture used for illustrative purpose. File

Gulf Today Report

Oil prices gained by 2% on Friday on course for its fifth week of an increase due to consensus by major producers to retain the cut of production.

Brent was up $1.04, or 2.1%, at $49.75 a barrel by 05:55 GMT after gaining around 1% on Thursday. West Texas Intermediate rose 84 cents, or 1.8% to stand at $46.48 a barrel.

 Following its meeting, OPEC+ will be easing deep oil output cut by 500,000 barrels per day in January. 

READ MORE

The Heart of Europe will deliver nearly 2,000 units this month

Air India employees prepare to bid for national carrier

Islamabad releases major funds for projects in aviation sector

However, there hasn’t been an agreement on policy for the rest of the year.

According to a report by Goldman Sachs, "OPEC+ clearing the hurdle of exiting its current cuts in a coordinated way ... reinforces our conviction in a steady and sustainable rally in oil prices through 2021."

The increase translates that OPEC+ will be cutting production by 7.2 million barrels per day or 7% of world demand from January. This is a reduction from its current cut which is 7.7 million barrels per day.

OPEC+ was expected to continue existing cuts until at least March.