Oil prices rose more than 1 percent on Monday, extending last week’s gains as traders eyed a recovery in demand due to successful coronavirus vaccine trials.
British drugmaker AstraZeneca said on Monday its vaccine, developed along with the University of Oxford, could be around 90 percent effective under one dosing regimen.
PVM analyst Stephen Brennock said the news was detaching sentiment from “gloomy fundamentals.”
“Investors are ignoring near-term headwinds, chief among which are surging global COVID infections, and instead looking ahead to next summer,” he said.
On the supply side, OPEC+, which meets on November 30 and December 1. It will look at options to extend their deal on output cuts by at least three months from January.
Smaller Russian oil companies are still planning to pump more crude this year, a group representing the producers said.