Oil prices drop despite OPEC+ agreement to reduce supply
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The news: OPEC+ producers have agreed to reduce oil output from the first quarter of next year. However, oil prices fell as the cuts were not as great as the market expected.
Saudi Arabia, Russia and others, which pump more than 40% of the world's oil, agreed to voluntary cuts of about 2.2 million barrels per day.
The numbers: Brent crude futures for January settled lower by 27 US cents, or 0.3%, to expire at $US82.83 a barrel, and a 5.2% loss for the month.
US West Texas Intermediate crude futures settled down $1.90, or 2.4%, to $75.96, and down 6.2% in November.
The context: OPEC+ is trying to limit global supply, and has invited South America's largest supplier Brazil to join the group. Brazil will join from January.
Saudi Arabia, Russia, Kuwait, Kazakhstan and Algeria were among producers that said cuts would be unwound gradually after the first quarter.
The sources: Reuters, OPEC media release
