2020-11-12 14:15:00
OIL PRICE: BELOW $44
REUTERS - NOVEMBER 12, 2020 - Oil prices fell on Thursday, snapping three consecutive daily gains, as traders tempered expectations of an early release of a COVID-19 vaccine and the IEA raised doubts about a quick demand rebound amid surging infections in Europe and the United States.
Brent crude LCOc1 fell 34 cents, or 0.8%, to $43.46 a barrel at 0917 GMT. U.S. West Texas Intermediate (WTI) crude CLc1 fell 30 cents, or 0.7%, to $41.15 a barrel.
Europe is already grappling with surging infections and new social restrictions. New York has ordered bars and restaurants to close early as U.S. cases hit record levels.
“The vaccine-related rotation has quickly faded as investors have realised that the pandemic won’t disappear as fast as it arrived,” said Hussein Sayed, chief market strategist at FXTM.
“While the vaccine remains the best news received since the virus spread, life won’t return to normal in a matter of days or weeks,” he added.
Both Brent and WTI soared earlier this week, lifted by hopes that the global pandemic can be brought under control after data showed an experimental COVID-19 vaccine being developed by Pfizer Inc PFE.N and Germany's BioNTech 22UAy.DE was 90% effective.
However, the International Energy Agency (IEA) said on Thursday that global oil demand was unlikely to get a significant boost from the roll-out of the vaccine until well into 2021.
The Organization of the Petroleum Exporting Countries (OPEC) also revised its demand forecast on Wednesday, saying global oil demand will rebound more slowly in 2021 than previously thought because of rising coronavirus cases.
Tamas Varga, analyst at PVM Oil said until the exact timing of the availability of the vaccine becomes clearer, oil prices “downside could turn out to be limited, but serious upside potential is unlikely to develop in the immediate future.”
Algeria’s energy minister said OPEC+ - grouping OPEC and allies like Russia - could extend 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.
“We feel OPEC has no choice but to delay output increases, most likely by three months,” analysts at ANZ Research said in a note.
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Earlier:
2020, November, 11, 14:55:00
OIL PRICE: BELOW $45
Brent rose $1.17, or 2.7%, to $44.78 a barrel. WTI added $1.17 cents, or 2.8%, to $42.53 a barrel.
2020, November, 11, 14:50:00
OIL PRICES 2020-21: $40 - $47
EIA forecasts Brent crude oil prices will average $47/b in 2021.
2020, November, 11, 14:30:00
OPEC+ IRAQ, SAUDI ARABIA
Saudi Arabia, Iraq "stressed full commitment to all decisions that have been agreed upon, in a manner that guarantees reaching fair and appropriate oil prices for exporters and consumers in the global oil market," the statement said.
2020, November, 10, 11:35:00
OIL PRICE: BELOW $43
Brent rose 9 cents, or 0.2%, to $42.49 a barrel. WTI edged up 16 cents, or 0.4%, to $40.45 a barrel.
2020, November, 10, 11:30:00
RUSSIA IS RESPONSIBLE PLAYER
"In any case, Russia is a responsible player on the energy market and that's something which governs our decisions and our thinking," Sorokin said, during the ADIPEC virtual conference Nov. 9.
2020, November, 9, 13:30:00
OIL PRICE: BELOW $41
Brent climbed 94 cents, or 2.4%, to $40.39 a barrel. WTI was at $38.07, up 93 cents, or 2.5%.
2020, November, 9, 13:25:00
OPEC, GECF DIALOG
The OPEC delegation was led by HE Mohammad Sanusi Barkindo, Secretary General, and the GECF delegation was headed by HE Yury Sentyurin, Secretary General.
