IHS Markit Vice Chairman Daniel Yergin provides insight into oil prices and American energy under a Biden administration.
OPEC members and their allies reached a deal to begin easing oil production cuts next year.
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The group will increase output by 500,000 barrels per day beginning in January and then hold monthly discussions about how quickly production will return to the market thereafter.
Brent crude oil, the international standard, traded up 61 cents at $48.86 per barrel while West Texas Intermediate crude oil added 47 cents to $45.75 per barrel.
Thursday’s decision is the latest easing of the supply cuts that were implemented in the wake of the COVID-19 pandemic. The so-called OPEC+ group said in August it would taper its production cut by 2 million barrels per day to 7.7 million.
Members in April slashed production by a record 9.7 million barrels per day in an effort to stabilize the market after lockdowns aimed at slowing the spread of COVID-19 resulted in global demand declining by 25 million to 30 million barrels per day.
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The sharp drop in demand resulted in Brent falling below $20 per barrel and WTI plunging below zero for the first time on record.
Lower prices have taken a toll on energy companies including majors Exxon Mobil Corp. and Chevron Corp. This week, both scaled back their spending plans through 2025.
