Welcome Guest! | World Time

Sydney

Tokyo

Singapore

Frankfurt

London

New York

Oil prices extend gains on COVID vaccine hopes

Monday,   23-Nov-2020   08:57 AM (IST)

Oil prices extended their gains on Monday as traders were optimistic about a recovery in crude demand thanks to successful coronavirus vaccine trials, but price gains were contained by renewed lockdowns in several countries. Sentiment was also bolstered by hopes that the Organization of the Petroleum Exporting Countries (OPEC), Russia and other producers, a group known as OPEC+, will keep crude output in check. Brent crude futures rose 17 cents, or 0.4%, to $45.13 a barrel by 0039 GMT while U.S. West Texas Intermediate crude gained 4 cents, or 0.1%, to $42.46 a barrel. Both benchmarks had increased by 5% last week. U.S. healthcare workers and others recommended that the nation's first COVID-19 inoculations could start getting shots within a day or two of regulatory consent next month, a top official of the government's vaccine development effort said on Sunday. Dr. Moncef Slaoui, chief scientific adviser for "Operation Warp Speed", said the U.S. Food and Drug Administration (FDA) would likely grant approval in mid-December for distribution of the vaccine produced by Pfizer Inc  and German partner BioNTech, launching the largest inoculation campaign in U.S. history. Elsewhere, OPEC+, which meets on Nov. 30 and Dec. 1, is looking at options to delay by at least three months from January the tapering of their 7.7 million barrel per day (bpd) cuts by around 2 million bpd. But smaller Russian oil companies are still planning to pump more crude this year despite a global deal to cut production as they have little leeway in managing the output of start-up fields, a group representing the producers said on Friday.