Markets anticipate the vaccine prick: indicators Wednesday, December 2nd

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Oil prices are rising as the market awaits the production agreement
Oil prices rose today, Wednesday, as the market awaits an agreement from producers, and many dealers expect that it will include continued curbing of supplies, while Britain’s approval of a vaccine to prevent Covid-19 gave new hope for a recovery in demand.

Earlier, prices were undermined by a sudden increase in oil inventories in the United States and the uncertainty spread by the postponement of “OPEC” and its allies a formal meeting to decide on increasing production from January by two days.

By 1500 GMT, Brent crude futures were up 34 cents, equivalent to 0.7%, to $ 47.76 a barrel, while US West Texas Intermediate crude increased 36 cents, or 0.8%, to $ 44.91.

Data from the American Petroleum Institute showed that US crude inventories rose 4.1 million barrels last week, compared to expectations in a Reuters poll for a decrease of 2.4 million barrels.

The Organization of the Petroleum Exporting Countries “OPEC”, Russia and other allies, within the “OPEC +” group, postponed talks on production policy for next year until Thursday from Tuesday, according to sources.

This year, the group implemented production cuts of 7.7 million barrels per day as fuel demand was affected by the Coronavirus pandemic.

Those cuts were widely expected to be extended to the first quarter of 2021 amid spikes in COVID-19 infections.

But the UAE said this week that while it could support the extension, it would find it difficult to pursue the same deep production cuts through 2021.

“Energy markets will remain in a state of tension until OPEC + passes tomorrow’s meeting. Oil prices will continue to receive support as the vaccine makers announce the dates for the start of vaccinations,” said Edward Moya, chief market analyst at Oanda in New York.

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