Oil prices down 1.5% as OPEC+ debates 2021 output policy | Reuters

Oil prices down 1.5% as OPEC+ debates 2021 output policy | Reuters

Oil fell about 1.5% on Monday as the world’s major oil producers discussed extending deep output cuts at talks this week, but benchmark crude will end the month with a strong rally built on hopes that COVID-19 vaccines will soon be available.

Brent crude for January delivery, which expires on Monday, dropped 68 cents, or 1.4%, to $47.50 a barrel by 1:24 p.m. EST (1824 GMT). The more actively traded February Brent contract was down 85 cents, or 1.76%, at $47.40.

U.S. West Texas Intermediate crude for January fell 73 cents, or 1.6%, to $44.80 a barrel.

OPEC members reached a broad consensus on the need to extend existing oil production cuts for three months from January if their allies in the wider OPEC+ group also support such a move, ministers and delegates said on Monday.

The Organization of the Petroleum Exporting Countries, Russia and others, known as OPEC+, plan to hold wider talks on Tuesday after discussions of key ministers on Sunday failed to reach a consensus.