SULAIMANI (ESTA) — Oil prices edged higher on Tuesday on expectations OPEC+ will extend oil output cuts for at least three months, while sentiment was bolstered by news of another promising COVID-19 vaccine.
Brent crude futures for January LCOc1 rose 41 cents, or 0.94%, to $44.23 a barrel by 0626 GMT and U.S. West Texas Intermediate (WTI) crude for December CLc1 added 32 cents, 0.77%, to $41.66 a barrel.
Equity markets rose on hopes of a quicker economy recovery after Moderna Inc said its experimental COVID-19 vaccine was 94.5% effective in preventing infection based on interim late-state data, Reuters reported.
“Moderna’s vaccine announcement had probably its largest effect on oil out of the main asset classes,” said Jeffrey Halley, senior market analyst at OANDA, adding that positive vaccine news has “almost certainly put a long-term floor under oil prices”.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies including Russia, all together called OPEC+, is set to hold a ministerial committee meeting on Tuesday that could recommend chances to production prices as the coronavirus pandemic continues its second wave, Reuters cited sources as saying on Monday.
