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Oil prices edge higher ahead of OPEC+ meeting, vaccine hopes

Tuesday,   17-Nov-2020   08:55 AM (IST)

Oil prices edged higher 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 (LCOc1) rose 16 cents, or 0.4%, to $43.98 a barrel by 0104 GMT and U.S. West Texas Intermediate crude for December (CLc1) added 13 cents, or 0.3%, to $41.47 a barrel. Equity markets rose on hopes of a quicker economic recovery after Moderna Inc (O:MRNA) said its experimental COVID-19 vaccine was 94.5% effective in preventing infection based on interim late-state data. This comes after Pfizer Inc (N:PFE) reported last week that its vaccine was more than 90% effective. 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. 1. The group is leaning towards postponement of a planned January increase in oil output for at least three months to support prices as the COVID-19 pandemic continues its second wave, sources told Reuters on Monday. China's crude oil throughput in October rose to its highest-ever level, underpinning a fast demand recovery in the world's second largest oil consumer.