Oil jumps more than 1% on UK vaccine approval, ongoing OPEC talks
Oil prices rose more than 1% 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 rose 94 cents, or 2%, at $48.36 a barrel. West Texas Intermediate crude settled 1.64%, or 73 cents, higher at $45.28 per barrel.
Traders were 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.
OPEC+ resumes talks on 2021 oil policy amid disagreements
OPEC and Russia resume talks on Thursday in a bid to define policies for 2021 after an initial round of discussions this week failed to bring a compromise on how to tackle weak oil demand amid a second coronavirus wave.
The group of OPEC and allies, known as OPEC+, had been widely expected to roll over existing oil cuts of 7.7 million barrels per day, or 8 percent of global supplies, at least until March 2021.
Reference: CNBC
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