Oil prices have come under severe selling pressure in recent trade after Reuters reported that, according to an OPEC+ source, the cartel agreed to go ahead with its planned 400K barrel per day output hike in January. 

Analysts had expected that, given greater uncertainty about the medium-term crude oil demand outlook due to the global spread of the Omicron Covid-19 variant, OPEC+ would pause output hikes. 

Market Reaction

In the last few minutes, WTI has sunk from above $65.00 to around $63.50, though is off earlier lows around $62.50.