Meeting of OPEC countries

Today, a meeting of the OPEC + countries is scheduled, where the final decision on the deal is expected, and how to solve the problem of weak oil demand amid the second wave of coronavirus is being discussed. The results of the deal will have an impact on oil and, as a result, on the currencies of the commodity countries. After several days of negotiations between Russia, Saudi Arabia and the United Arab Emirates, discussions are now focused on proposals to gradually ease oil production cuts over several months. The group is expected to extend the cut by 7.7 million barrels per day, 8% of world oil reserves, until March 2021.

But after the approval of antiviral vaccines boosted oil prices in late November, several producers began to question the need for a tightening of oil policies advocated by Saudi Arabia. Other options include postponing the cuts to January and then increasing production by 1 million barrels per day in February, another 1 million barrels per day in March, and in April. Additional production of 2 million barrels per day will cost plus $ 55 billion in lost revenue in 2021.

Brent futures are trading at $ 48.09 a barrel.

The Canadian dollar rose 0.06% from 1.2918 to 1.2922 per US dollar. The currency hit its strongest intraday level since October 2018. The rise in the dollar triggered a rise in oil prices. Canada is a large oil producer with a share of 1.6%.

The gold price is actively rising. Troy ounce is trading at $ 1837.30 after the previous update from the level of $ 1780.90. Over the last two weeks of November, gold has lost about $ 150 an ounce, or about 7.5% of its value.

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