Oil’s value has increased by more than a quarter this month amid positive results for three Covid-19 vaccines. It’s reclaimed heights not seen since the pandemic devastated global demand in March even as a resurgent virus prompted more lockdown measures. Expectations that OPEC and its allies will delay an increase in production planned for January have also aided the rally.
The investor mood has been lifted by the developments around vaccines and the likely extension of the Opec+ output cuts, said Daniel Hynes, a senior commodity strategist at Australia & New Zealand Banking Group. “The market is fairly well-priced and should continue gains in the coming days.”
Goldman Sachs Group said in a note that it expects Opec+ to delay its planned 2 million barrel a day output ramp-up by three months.
It forecast Brent would average $47 a barrel next quarter if this happens.
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