Reuters | Dec 02, 2020 18:30
* 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
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
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.
Written By: Reuters
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