Oil jumps to 11-week high on hope of OPEC+ supply increase delay
Oil prices firmed by more than 1% on Wednesday on hopes OPEC and its allies will delay a planned increase in oil output and after Pfizer said its COVID-19 vaccine was more effective than previously reported.
Brent crude rose 70 cents, or 1.6%, to $44.45 a barrel, while U.S. West Texas Intermediate crude settled 39 cents higher at an 11-week high of $41.82 per barrel.
Prices were also supported by a smaller-than-expected increase in U.S. crude stockpiles last week.
Both contracts jumped by about $1 after Pfizer Inc said that final results from late-stage trial of its vaccine showed it was 95% effective. Last week it had put the efficacy at more than 90%.
Moderna Inc on Monday said that preliminary data for its vaccine also showed it was almost 95% effective.
OPEC+, comprising the Organization of the Petroleum Exporting Countries, Russia and other producers, met on Tuesday but made no formal recommendation. The group is due to discuss policy at a full ministerial meeting to be held on Nov. 30 and Dec. 1.
Members of OPEC+ are leaning towards delaying the current plan to boost output in January by 2 million barrels per day (bpd), sources have said. They are considering a possible delay of three or six months.
In the United States, crude inventories rose 768,000 barrels last week, compared with analyst expectations in a Reuters poll for a 1.7 million-barrel rise. Distillate stockpiles, which include diesel and heating oil, fell by 5.2 million barrels, far exceeding expectations.
Reference: CNBC
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