Oil fluctuated near $41 a barrel as the dollar fell and traders weighed the potential for OPEC+ to delay a planned easing of output cuts. While headline prices have gained on the growing prospect of an effective Covid-19 vaccine in recent days, an OPEC+ panel said the group, which meets again on Tuesday, should consider holding off on easing bumper production curbs by three to six months.
But in Europe and the U.S., it’s a different picture. Covid-19 cases are growing and movement indicators have been declining, particularly in Europe. With OPEC+ balancing those concerns against resurgent Asian demand, a technical committee said the group should delay an output hike of almost 2 million barrels a day in January.
“Oil prices have received a boost form a string of positive vaccine news lately,” said Jens Pedersen, senior analyst at Danske Bank. “The path toward a vaccine could include more restrictions, which will hit demand.”
PRICES
West Texas Intermediate for December delivery gained 12 cents to $41.46 a barrel as of 10:49 a.m. London time
Brent for January settlement gained 0.2% at $43.92
