Oil climbs with hope OPEC+ will delay increase in supply

Gulf Today Report

Oil prices edge higher on Thursday, increasing the week’s gain to more than 11% on the prospect of a delay in supply increase as COVID-19 cases surge and dent fuel demand.

US West Texas Intermediate (WTI) crude futures climbed 12 cents, or 0.3%, to $41.57 a barrel at 04:36 GMT, while Brent crude futures rose 9 cents, or 0.2%, to $43.89 a barrel.

 On Wednesday, Algeria's energy minister said OPEC+ might extend current production cuts of 7.7 million barrels per day in 2021, if necessary. 

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Brent and WTI jumped this week, assuring that COVID-19 vaccine can help in controlling the pandemic, thereby, affecting the market positively.

Lachlan Shaw, National Australia Bank’s head of commodity research said, "It's great news, no question about that ... But it will take time for vaccines to be rolled out, and therefore it will take time for demand to be positively impacted by that."

Currently, there is a surge in fuel demand following the rising in coronavirus cases in Europe, the United States and Latin America. Due to that, OPEC has said.