Oil prices edged higher on Thursday, taking the weeks gains so far to more than 10 on growing hopes that the worlds major producers will hold off on a planned supply increase as soaring cases of COVID19 dent fuel demand.
U.S. West Texas Intermediate WTI crude futures climbed 17 cents, or 0.4, to 41.62 a barrel at 0732 GMT, while Brent crude futures rose 7 cents, or almost 0.2, to 43.87 a barrel.
Algerias energy minister said on Wednesday that OPEC grouping the Organization of the Petroleum Exporting Countries OPEC and other suppliers including Russia could extend current production cuts of 7.7 million barrels per day bpd into 2021, or deepen them further if needed.
he weakening outlook has piled pressure on OPEC to hold back a supply increase of 2 million bpd scheduled for January, with the market now pricing in a delay, analysts said.
Both Brent and WTI have soared this week, lifted by hopes that the global coronarivus pandemic can be brought under control after initial trial data showed an experimental COVID19 vaccine being developed by Pfizer Inc and Germany39;s BioNTech was 90 effective.
Its great news, no question about that … But it will take time for vaccines to be rolled out, and therefore it will take time for demand to be positively impacted by that, said Lachlan Shaw, National Australia Banks head of commodity research.
In the meantime, fuel demand is under pressure from rising infections in Europe, the United States and Latin America. As a result,…