Oil prices edged up on Tuesday on expectations OPEC and its allies will extend oil production cuts for at least three months, while sentiment was bolstered by news of another promising coronavirus vaccine.
Brent crude futures for January rose 18 cents, or 0.4, to 44.00 a barrel by 0737 GMT and U.S. West Texas Intermediate crude for December added 8 cents, or 0.2, to 41.42 a barrel.
Equity markets gained on hopes of a quicker economic recovery after Moderna Inc said its experimental COVID19 vaccine was 94.5 effective in preventing infection based on interim latestate data.
Modernas 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 longterm floor under oil prices.
Moderna39;s results came after Pfizer Inc reported last week that its vaccine was more than 90 effective.
If we judge economic recovery, particularly through the lens of oil markets… with multiple high efficacy vaccines in the pipeline, there is good chance mobility will return close to prepandemic levels later in 2021, said Stephen Innes, chief global markets strategist at axi in a note.
OPEC, which groups the Organization of the Petroleum Exporting Countries OPEC and its allies, including Russia, is set to hold a ministerial committee meeting on Tuesday that could recommend changes to production quotas when all the ministers meet on Nov. 30 and Dec….