How does oil market respond to Qatar's withdrawal from OPEC?
Oil prices spiked higher this morning after the U.S. and China agreed to a 90-day truce in their trade war over the week-end at the G20 summit in Argentina. Traders are also reacting to expectations that OPEC and its allies will agree to production cuts at its meeting in Vienna on December 6-7.
WTI rose $2.92 a barrel to a high of $53.85, up 5.7%, before easing to around $53.00 by 09:30 GMT after Qatar's announcement. Brent crude rose 5.3% or $3.14 to a high of $62.60 and was last trading around $61.60, Reuters reported.
Qatar today announced plans to pull out of OPEC on January 1, 2019.