The Organization of the Petroleum Exporting Countries and its allies, aka OPEC-plus, on Thursday agreed to boost production beginning in January by 500,000 b/d, ending a multi-day standoff over the timing and volume of an output increase because of concerns that new coronavirus outbreaks could dampen demand into early 2021.

Covid cases Dec 3

The cartel and affiliated countries slashed production earlier in 2020 by 9.7 million b/d in response to pandemic-induced demand destruction and low oil prices. The group originally agreed to rebuild production in increments of 2 million b/d, every six months.

OPEC-plus proceeded with the first increases over the summer as oil prices started to recover. However, in meetings that began early this week, some members expressed concerns that demand would not...