Tuesday 17 November 2020

Oil falls back on tightening restrictions despite OPEC+ hopes | Reuters

Oil falls back on tightening restrictions despite OPEC+ hopes | Reuters

Oil prices eased on Tuesday as worries about the short-term impact on demand of a new surge in the coronavirus pandemic outweighed hopes for a vaccine and tighter OPEC+ supply policy.

Brent was down 29 cents, or 0.6%, at $43.53 a barrel by 1444 GMT while U.S. crude was down 27 cents, or 0.6%, at $41.07. Both had been up 40 cents earlier in the session.

“Developments with regards to a vaccine are constructive for oil demand in the medium to long term. However, for the near term it changes little, with still plenty of concern over the demand impact from the latest wave of COVID-19,” said ING commodity strategist Warren Patterson.

Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman called on fellow OPEC+ members on Tuesday to be flexible in responding to oil market needs as the kingdom builds the case for a tighter oil production policy in 2021.

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