Oil Prices Set for Weekly Gain Ahead of OPEC Meeting

Oil prices were mixed on Friday but remained on course for a fourth straight week of gains ahead of an OPEC meeting early next week.

Brent crude for January rose 28 cents, or 0.6, to 48.08 a barrel by 0913 GMT and the more active February contract gained 32 cents to 48.11.

West Texas Intermediate, meanwhile, was down 40 cents, or 0.9, at 45.31.

Both benchmarks are up about 7 over the week after encouraging news on potential COVID19 vaccines from AstraZeneca and others. However, questions have been raised over AstraZenecas vaccine for the world, with several scientists sounding caution over the trial results.

While a successful vaccine rollout should break the link between infection and mobility, even then global oil demand will likely only reach its prepandemic run rate by mid2022, JP Morgan said.

The Organization of the Petroleum Exporting Countries OPEC and allies including Russia are leaning towards delaying next years planned increase in oil output, said three sources close to the OPEC group.

OPEC was planning to raise output by 2 million barrels per day bpd in January about 2 of global consumption after record supply cuts this year. OPEC ministers are due to meet from Monday.

We reiterate our view that the alliance will likely choose to delay the 2 million bpd tapering decision on 30 November by a quarter, from January 1 to April 1, JP Morgan said.

Informal talks between ministers are set to take place on Saturday.

Rising Libyan output is also…

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