NEW YORK (Reuters) – Oil prices stabilized more than 2% on Monday after trading higher earlier today as Moderna Inc MRNA.O said his experimental vaccine was 94.5% effective in preventing COVID-19.
Brent Futures for January LCOc1 stood at 1.04, or 2.43%, at $ 43.82 per barrel, after increasing more than 4% previously. US West Texas Intermediate crude for December CLc1 was up $ 1.21, or 3%, to $ 41.34.
“There was a little bit of excessive buying pressure, which pushed us above where the fundamentals were supporting us, so we only partially held the gains,” said Gary Cunningham, research director at market at Tradition Energy in Stamford. “We are concerned about global demand as COVID-19 epidemics continue around the world.”
Moderna’s announcement comes after Pfizer Inc PFE.N reported last week that his vaccine was over 90% effective, raising hopes that the damage the pandemic caused to the global economy could be reduced.
Prices were also supported by data showing a rebound in China and Japan, with figures showing Chinese refineries processed record daily levels of crude in October.
WTI and Brent both gained more than 8% last week on hope for a vaccine and the hope that the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, maintain. lower production next year to support prices.
The group, known as OPEC +, cut production by around 7.7 million barrels per day (b / d), with compliance seen at 96% in October, and had planned to increase production production of 2 million bpd from January.
OPEC + is expected to hold a ministerial committee meeting on Tuesday that could recommend changes to production quotas when all ministers meet on November 30 and December 1.
“There is no denying that the oil market is entirely in the hands of OPEC +,” said Bjarne Schieldrop, chief analyst at SEB. “Organization is the only reason oil prices today aren’t $ 20 a barrel. As such, their next meeting from November 30 to December 1 is no less hugely important. “
Additional reports by Florence Tan and Roslan Khasawneh and Noah Browning; Edited by Jane Merriman, David Goodman and Cynthia Osterman