UPDATE 6-Oil prices rise on U.K. vaccine approval, outcome of OPEC deal

UPDATE 6-Oil prices rise on U.K. vaccine approval, outcome of OPEC deal

Reuters  | Dec 02, 2020 18:30

UPDATE 6-Oil prices rise on U.K. vaccine approval, outcome of OPEC deal

* Formal OPEC+ meeting delayed to Thurs from Tues -sources
* Market bets output cuts to be extended through Q1 -analyst
* U.S. crude stocks drew 679,000 barrels last week -EIA

(New throughout, updates prices, market activity, comments; new
byline, changes dateline, previous LONDON)
By Laura Sanicola
NEW YORK, Dec 2 (Reuters) - Oil prices rose on Wednesday as
the market awaited a pact from producers on output, which many
traders expect will continue to be reined in, and Britain's
approval of a COVID-19 vaccine boosted hopes for a demand
recovery.
Brent crude oil futures LCOc1 rose $1.00, or 2.1%, at
$48.42 a barrel by 11:47 EDT (1647 GMT). West Texas Intermediate
crude CLc1 was up $1.02, or 2.3%, at $$45.57 a barrel.
Traders are watching the Organization of the Petroleum
Exporting Countries (OPEC), Russia and other allies, known as
OPEC+, which postponed talks on next year's oil output policy to
Thursday from Tuesday, according to sources. "It looks like there is headway being made, which the market
is looking for," said John Kilduff, partner at Again Capital LLC
in New York.
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 spikes in COVID-19 cases.
But the United Arab Emirates (UAE) said this week that even
though it could support a rollover, it would struggle to
continue with the same 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 U.K. 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.

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Discussion
Write a reply...
Please wait a minute before you try to comment again.

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (USA) English (UK) English (India) English (Canada) English (Australia) English (South Africa) English (Philippines) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 简体中文 繁體中文 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
NoYes
CancelYes
Saving Changes

+

Download the Investing.com App

Get free real time quotes, charts and alerts on stocks, indices, currencies, commodities and bonds. Get free top of the line technical analysis/predictors.

Investing.com is better on the App!

More content, faster quotes and charts, and a smoother experience is available only on the App.