Oil Prices Continue to Gain on Vaccine Hopes and Gulf Region Tensions

Oil prices rose today, Monday, to continue their gains, as dealers expect demand for crude to pick up again due to successful trials of a coronavirus vaccine, amid concerns about tensions in the Gulf region.

Brent futures rose 2.29% to $ 46.04 a barrel at 11:50 GMT, and crude hit its highest level since September 2.

While US West Texas Intermediate crude rose 2 percent to $ 43.27 a barrel. Both crudes jumped 5% last week.

Stephen Ince, chief global market expert at ACCI, a financial services company, said: “Positive sentiment remains driven by the recent good news of the effectiveness of the coronavirus vaccines under development and expectations that The OPEC + meeting at the end of this month could see the extension of empty cups for a period of between three and six months. “

OPEC + will meet on November 30 and December 1 to discuss options to reduce production by two million barrels per day from 7.7 million barrels per day from next January for a period of up to at least three months.

In contrast, the Yemeni group Houthi said today, Monday, that it had launched a missile at a distribution station operated by Saudi Aramco in the city of Jeddah overlooking the Red Sea. There has been no confirmation from Saudi Arabia of the allegations by a military spokesperson for the Houthi group.

Aramco’s oil production and export facilities are mainly located in the Eastern Province of Saudi Arabia, over 1,000 kilometers from Jeddah.

Source: “Reuters”

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