Oil prices edging higher on positive signals of COVID-19 vaccine trials

17:28, 25 November 2020 24
Photo: Sergey Lantyukhov/

Crude prices showed positive dynamics due to several factors on November 25.

As of 16:09 Moscow time, the price of Brent oil futures rose to $48.31 per barrel, while WTI increased to $45.27 per barrel, according to the trading data from the Intercontinental Exchange.

One of the main drivers of price growth is the news about the successful testing of several vaccines against coronavirus and their soonest launch into production. The market is reconsidering the risks associated with the pandemic and is guided by more positive scenarios, Oil Capital reports.

Another critical factor that takes the prices higher is an expected meeting between the OPEC + deal participants. They may postpone the easing of the restrictions imposed on oil production. The countries participating in the transaction have limited the volume of oil production to 7.7 million barrels per day and planned to raise the bar to 9.6 million barrels per day in the new year.

The publication also notes that oil futures have moved to backwardation - more distant oil contracts have become cheaper than the nearest. This phenomenon indicates a gradual normalization of the market. reported earlier that oil and gas exports from Russia to Europe might decline by 2040.