Oil nudges up on hopes OPEC+ will curb supply as Covid-19 cases rise

Shafaq news/ Oil prices rose on Thursday, taking the week’s gains to more than 12% on growing hopes that the world’s major producers will hold off on a planned supply increase as soaring cases of Covid-19 dent fuel demand according to CNBC.

U.S. West Texas Intermediate (WTI) crude futures climbed 13 cents, or 0.31%, to $41.59 a barrel at 0520 GMT, while Brent crude futures rose 11 cents, or 0.25%, to $43.90 a barrel.

Algeria’s energy minister said on Wednesday that OPEC+ – grouping the Organization of the Petroleum Exporting Countries (OPEC) and other suppliers including Russia – could extend current production cuts of 7.7 million barrels per day (bpd) into 2021, or deepen them further if needed.

The weakening outlook has piled pressure on OPEC+ to hold back a supply increase of 2 million bpd scheduled for January, with the market now pricing in a delay, analysts said.

Both Brent and WTI have soared this week, lifted by hopes that the global coronavirus pandemic can be brought under control after initial trial data showed an experimental Covid-19 vaccine being developed by Pfizer Inc and Germany’s BioNTech was 90% effective.

In the meantime, fuel demand is under pressure from rising infections in Europe, the United States and Latin America. As a result, OPEC has said demand will rebound more slowly in 2021 than previously thought.