Azeri LT CIF crude oil, exported from Azerbaijan to the world markets, decreased by $ 0.23 (-0.46%), settling at $ 49.45 per barrel, Report informs.
The lowest price for Azeri Light was recorded on April 21, 2020 ($ 15.81), and, in July 2008, the all-time high was $ 149.66.
Oil prices sank over 1% on Monday, erasing the positive sentiment that the market boasted last week after OPEC+ agreed on a January production plan.
While OPEC+ agreed to add 500,000 barrels of oil production per day to its quota, it was less of an increase than its original plan had called for. The markets interpreted this as a positive sign. Combined with positive developments after several covid-19 vaccines, oil prices rallied last week.
But reports of the increasing number of coronavirus cases are threatening to dampen the optimism that OPEC+ created, sending the price of Brent crude down 1.18% to $48.67. The price of a WTI barrel was off 1.32% on Monday, at $45.65.
In the short term, the reality is that the vaccine news—and OPEC+ developments—won’t have any effect on oil demand, which has plagued the oil market since even before the pandemic started. But certainly, after the pandemic set in, particularly in the United States, the lockdowns tamped down activity, and with it, oil demand. And even the best vaccine news that could be hoped for will have only a muted effect on oil demand through at least the first half of next year.