Oil prices edge up as market eyes OPEC+ meeting, vaccine hopes | Reuters

Oil prices edge up as market eyes OPEC+ meeting, vaccine hopes | Reuters

Oil prices edged up on Tuesday on expectations OPEC and its allies will extend oil production cuts for at least three months, while sentiment was bolstered by news of another promising coronavirus vaccine.

Brent crude futures for January LCOc1 rose 18 cents, or 0.4%, to $44.00 a barrel by 0737 GMT and U.S. West Texas Intermediate crude for December CLc1 added 8 cents, or 0.2%, to $41.42 a barrel.

Equity markets gained on hopes of a quicker economic recovery after Moderna Inc MRNA.O said its experimental COVID-19 vaccine was 94.5% effective in preventing infection based on interim late-state data.

“Moderna’s vaccine announcement had probably its largest effect on oil out of the main asset classes,” said Jeffrey Halley, senior market analyst at OANDA, adding that positive vaccine news has “almost certainly put a long-term floor under oil prices”.