It’s a done deal.
Oil in New York is on track to post its largest gain since 2016 after OPEC producers and allies surprised the market with a larger-than-expected deal to reduce output. West Texas Intermediate crude rallied as much as 5.3 percent on Friday, while its global counterpart Brent jumped 6.1 percent. The group will collectively curb production by 1.2 million barrels a day, higher than the 1 million barrel-a-day scenario that was earlier floated.
“It’s been a volatile October and November, but this is a nice Christmas present into December,” said Chris Kettenmann, chief energy strategist at Macro Risk Advisors LLC. OPEC “stepped up and delivered this year and we should see volatility come in.”