Global oil prices are rising, and investors are waiting for the OPEC + Ministerial monitoring Committee meeting on Tuesday. At the same time, traders continue to assess the prospects for demand amid news on the coronavirus vaccine, Report says, citing the auction data.
As of 8.59 am (Baku time), the price of December futures for Brent North Sea crude oil mix was up 0.84% to 44.19 US dollars per barrel, and December futures for WTI crude oil were up 0.68% to 41.62 US dollars per barrel.
Later in the course of trading, OPEC+ Ministerial monitoring Committee will hold a meeting, where participants will discuss the oil market situation against the background of the second wave of coronavirus in the world. Investors assess what OPEC+ countries will make decisions on production in connection with the situation around the pandemic.
Notably, the new OPEC + agreements began in May with a reduction in oil production by 9.7 million barrels per day for three months. Since August, the alliance has continued to reduce output in a smaller volume - by 7.7 million barrels per day until the end of the year. And it is expected to decrease by 5.8 million until the end of April 2022.
However, the onset of the second wave of COVID-19 has raised concerns about a slowdown in oil demand recovery. There were reports that OPEC + discussed the possibility of postponing its planned production growth for a quarter or two.
The coronavirus vaccine's news is also affecting the outlook for economic recovery and, therefore, oil demand. Moderna said on Monday that the results of the third phase of trials of the coronavirus vaccine showed its effectiveness at 94.5%. Besides, pharmaceutical companies Pfizer and BioNTech have previously reported successful vaccine trials.