On Tuesday, Oil prices edged higher with expectations that OPEC and its allies would extend oil production cuts for at least three months, while the market sentiments was bolstered away by Moderna Covid-19 vaccine results.
January Brent crude rose 0.4 per cent or 16 cents to $43.98 a barrel by 0104 GMT and U.S. West Texas Intermediate crude futures for December was up 0.3 per cent or 16 cents to $41.47 a barrel. Equity markets across the globe also rose on the hopes of speedy economic recovery after Moderna Inc. said that its experimental COVID-19 vaccine is 94.5 per cent effective based on interim data from a late-stage trial.
This comes after last week Pfizer Inc. reported that its vaccine is effective more than 90 per cent in preventing COVID-19. Today, OPEC+ is holding a ministerial committee meeting which would recommend changes in production quotas when all the ministers meet on 30 November and 1 December.
OPEC+ groups the OPEC (Organization of the Petroleum Exporting Countries) and its allies including the Russia. It is leaning towards the postponement of planned production quotas for January to increase oil production for at least months to support price level as the second wave of pandemic continues.