Share this article

Oil prices have edged higher as investors witnessed a recovery in fuel demand following successful coronavirus (Covid-19) vaccine trials.

Prices were also supported by expectations that the Organization of the Petroleum Exporting Countries (OPEC), and allies, including Russia, together known as OPEC+, might ‘extend a deal to restrain output’.

Brent crude futures rose by $0.94 to reach $45.90 a barrel while US West Texas Intermediate (WTI) futures were up by $0.76 to touch $43.18, Reuters reported.

Both the Brent and the WTI benchmarks gained 5% last week.

Demand outlook has improved with news on progression towards Covid-19 vaccines development.

According to a US official, first vaccine injections in the US could start within a day or two after securing regulatory approval.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData

On 23 November, British drug-making firm AstraZeneca said that its vaccine, developed in partnership with the University of Oxford, could be more than 90% effective under a single dosing regimen.

PVM analyst Stephen Brennock stated the news was ‘detaching sentiment’ from ‘gloomy fundamentals’.

He added: “Investors are ignoring near-term headwinds, chief among which are surging global Covid infections, and instead of looking ahead to next summer.”

On the supply front, OPEC+ will discuss its ‘output policy’ during the ministers meet on 30 November and 1 December.

Meanwhile, Yemen’s Houthi group said it fired a missile that struck a Saudi Aramco oil company distribution station in Jeddah, Saudi Arabia.

However, there was ‘no immediate Saudi confirmation of the claim’, said Reuters.