Crude oil prices moved higher on Wednesday amid expectations that OPEC+ will extend its current production cuts further into 2021, or even increase the cuts.

A smaller than expected increase in U.S. crude inventories in the week ended October 13, and rising optimism about a potential coronavirus vaccine arriving sometime soon also contributed to oil’s uptick.

West Texas Intermediate Crude oil futures for December settled at $41.82 a barrel, up $0.39 or 0.9% from previous close.

Brent crude futures were up $0.58 or about 1.3% at $44.33 a little while ago.

The expectations that OPEC and its allies will delay a planned rise in oil output offset investor concerns over weaker U.S. consumption in light of the Covid-19 resurgence.

Data released by the Energy Information Administration (EIA) this morning showed crude stockpiles in the U.S. increased by 768,000 barrels last week, less than an expected increase of 1.65 million barrels.

The data also showed that oil stored at Cushing, Oklahoma, rose 1.2 million barrels last week, against expectations for a build of 2.15 million barrels.

The American Petroleum Institute (API) reported on Tuesday a build in crude oil inventories of 4.174 million barrels for the week ending November 13 while analysts had predicted an inventory build of 1.95-million barrels.

The OPEC ministerial committee meeting on Tuesday ended with overall support for extending the production cuts by three months, but there was no formal recommendation. A decision is likely at their upcoming full ministerial meeting on Nov. 30 and Dec. 1.

On the Covid-19 vaccine front, Pfizer and BioNTech announced that the final trial results of their Covid-19 vaccine candidate indicate an efficacy rate of 95%. The companies said they plan to submit a request to the FDA for an Emergency Use Authorization for the vaccine “within days.”

The material has been provided by InstaForex Company –

Leave your vote

🚀If you want to get a Forex Robot Coded as per your trading strategy but are unable to do so because of the high price for the Robot then you can take advantage of the CROWD FUNDING campaigns feature. ✔ These are some crowd funding campaigns for Forex Robots, which when completed can provide the very same Forex Robot to the participants at an average price of $5-$10 per participant. ✔ You either participate in one of the already listed campaigns or send us your Forex strategy : Submit Crowd Funding Campaign , for which you would like the Forex Robot to be coded. A Crowd Funding Campaign would then be started for the same . ✔ All you have to do later on is to share the campaign online with your friends to encourage more people to participate in the campaign.

As a result, each participant can get that Forex robot for just a campaign contribution of $5 (which is the minimum). Participants can back the campaign by anything above or equal to $5 to reach the funding goal to close the campaign.