Brent crude benchmark drops about 2% despite historic output cut

Brent crude benchmark drops about 2% despite historic output cut

Saudi Arabia, Kuwait and the United Arab Emirates volunteered to make cuts even deeper than those agreed, which would effectively bring down OPEC+ supply by 12.5 million bpd from current levels, the Saudi energy minister said.. Even at full compliance, demand weakness concerns capped oil price gains.. "We expect the OPEC+ decision at best to establish a floor under the market," said Harry Tchilinguirian of BNP Paribas, adding that oil price gains could also be capped by producer hedging.. FILE PHOTO: The sun is seen behind a crude oil pump jack in the Permian Basin in Loving County, Texas, U.S., November 22, 2019.. "We do not expect a sustained recovery in the oil price until pent-up demand is released in Q3.". The United States, where antitrust legislation makes it hard to act in tandem with groups such as OPEC, has said that low prices mean its output would already fall by as much as 2 million bpd this year without planned cuts..