Oil nears $50 for the first time since the start of the pandemic after OPEC+ agrees to a gradual output increase of just 500,000 barrels a day in January

Oil nears $50 for the first time since the start of the pandemic after OPEC+ agrees to a gradual output increase of just 500,000 barrels a day in January

Oil prices neared $50 for the first time since its historic crash this year after OPEC+ agreed to raise supply in January. Producers agreed to increase output by 500,000 barrels per day in January, far lower than the 2 million barrels expected.Plans on further output levels will be decided at future meetings.Commerzbank said it doesn't share the oil market's positive interpretation and attributes the latest price strength primarily to speculative buying.Visit Business Insider's homepage for more stories.

Oil prices jumped to their highest level since the start of the pandemic after OPEC and Russia-led producers agreed to a small increase in output in January.

Global benchmark Brent crude rose 2%, to $49.70 a barrel, and US benchmark West Texas Intermediate rose 2%, to $46.60 a barrel.

The Organization of the Petroleum Exporting Countries, a group consisting of 15 members led by Saudi Arabia, and its allies including Russia, Kazakhstan, Oman and others, agreed to cautiously raise oil supply by 500,000 barrels per day in the next month. That is well below the 2 million barrels per day initially agreed upon. Future output levels will be discussed at forthcoming monthly meetings.

A current deal to reduce output by 7.7 million barrels a day expires