Oil prices rose on Tuesday, thanks to expectations that OPEC and its allies will extend crude production cuts for at least three months, while sentiment boosted news of another promising Corona virus vaccine.
Brent crude in January contracts rose 26 cents, equivalent to 0.6 percent, to $ 44.08 a barrel. US West Texas Intermediate crude added 18 cents, equivalent to 0.4 percent, to $ 41.25 a barrel.
Stock markets rose, driven by hopes of a faster economic recovery, after Moderna announced that its experimental COVID-19 vaccine is 94.5 percent effective in preventing the disease, according to preliminary data.
“Oil is likely to be the most affected among the major asset classes with the announcement of the Moderna vaccine,” said Geoffrey Haley, market analyst at Oanda, adding that the positive vaccine news “certainly provided long-term support for oil prices.”
Moderna’s results came after Pfizer announced last week that its vaccine was more than 90 percent effective.
The OPEC + group, which includes OPEC and allies including Russia, is scheduled to hold a ministerial committee meeting today that may recommend changing production quotas when all ministers meet on November 30 and December 1.