Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 

MarketScreener Homepage  >  News  >  Economy & Forex

News : Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Oil prices rise on UK vaccine approval; signs OPEC+ may maintain output cuts

12/02/2020 | 03:18pm EST
FILE PHOTO: The OPEC logo pictured ahead of an informal meeting between members in Algiers

NEW YORK (Reuters) - Oil prices settled higher on Wednesday as Britain's approval of a COVID-19 vaccine boosted hopes for a demand recovery and on mounting expectations that producing countries will maintain output limits next year.

Brent crude oil futures settled up 83 cents, or 1.75%, at $48.25 a barrel. West Texas Intermediate crude settled up 73 cents or 1.64% at $45.28 a barrel.

Traders were watching OPEC+, the Organization of the Petroleum Exporting Countries (OPEC), Russia and other allies, which postponed talks on 2021 output policy to Thursday from Tuesday, according to sources.

"Today's strong advance appeared largely based on indications of progress at today's OPEC meeting that could potentially clear the way for a rubber stamp at the OPEC+ talks that are still scheduled for tomorrow," said Jim Ritterbusch, president of Ritterbusch and Associates in Galena, Illinois.

This year, the group imposed production cuts of 7.7 million barrels per day (bpd) as the coronavirus pandemic hit fuel demand.

It had been widely expected to roll those reductions over into January-March 2021 amid new spikes in COVID-19 cases.

Earlier this week, the United Arab Emirates (UAE) said it would struggle to continue its deep output reductions into 2021.

On Wednesday, Britain became the first Western country to approve a COVID-19 vaccine, jumping ahead of the United States and the European Union in a possible return to normal life and recovery in oil demand.

"News of the UK vaccine approval is what the oil market needed more than anything else to get demand up...the rest is largely just noise," said John Kilduff, partner at Again Capital LLC in New York.

U.S. crude inventories fell by 679,000 barrels in the week to Nov. 27, according to data from the Energy Information Administration on Wednesday, defying the build the American Petroleum Institute reported on Tuesday.

U.S. oil production rose 100,000 barrels per day last week to its highest level since May, the EIA data showed.

(Additional reporting by Noah Browning and Jessica Jaganathan; Editing by David Gregorio and Elaine Hardcastle)

By Laura Sanicola

© Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
EURO / DIRHAM (EUR/AED) -0.26% 4.4456 Delayed Quote.-1.13%
LONDON BRENT OIL -0.43% 55.7 Delayed Quote.5.90%
US DOLLAR / DIRHAM (USD/AED) 0.00% 3.6729 Delayed Quote.0.00%
US DOLLAR / RUSSIAN ROUBLE (USD/RUB) -0.40% 73.24 Delayed Quote.0.12%
WTI -0.42% 52.943 Delayed Quote.8.53%
Latest news "Economy & Forex"
05:26pUtilities Up As Treasury Yields Fall -- Utilities Roundup
05:26pIndustrials Up On Cyclical Demand -- Industrials Roundup
05:26pWorld bank, imf spring meetings to be held online due to covid-19 pandemic -world bank/imf joint statement
05:25pCommunications Services Up After Netflix Earnings - Communications Services Roundup
05:24pDeparting U.S. FCC chair warns of threats to telecomms from China
05:19pCanada is "very disappointed" by u.s. decision to scrap permit for keystone xl pipeline -canadian ambassador to washington
05:12pTech Rallies On Earnings Optimism After Netflix Report -- Tech Roundup
05:09pBrazil Central Bank Leaves Benchmark Selic Rate Unchanged at 2%, Withdraws Forward Guidance
05:09pFinancials Fall With Treasury Yields Despite Strong Earnings - Financials Roundup
05:08pCanada respects and understands biden administration's decision to scrap permit for keystone xl permit -foreign minister
Latest news "Economy & Forex"