Oil prices rise on UK vaccine approval; signs OPEC+ may maintain output cuts | Reuters

Oil prices rise on UK vaccine approval; signs OPEC+ may maintain output cuts | Reuters

Oil prices settled higher on Wednesday as Britain’s approval of a COVID-19 vaccine boosted hopes for a demand recovery and on mounting expectations that producing countries will maintain output limits next year.

Brent crude oil futures settled up 83 cents, or 1.75%, at $48.25 a barrel. West Texas Intermediate crude settled up 73 cents or 1.64% at $45.28 a barrel.

Traders were watching OPEC+, the Organization of the Petroleum Exporting Countries (OPEC), Russia and other allies, which postponed talks on 2021 output policy to Thursday from Tuesday, according to sources.

“Today’s strong advance appeared largely based on indications of progress at today’s OPEC meeting that could potentially clear the way for a rubber stamp at the OPEC+ talks that are still scheduled for tomorrow,” said Jim Ritterbusch, president of Ritterbusch and Associates in Galena, Illinois.