Commodity News
HeadLine : Oil takes breather after vaccine rally as stockpiles rise
Date : Nov 25 2020
U.S. oil edged lower on Wednesday, after an industry report showed crude stockpiles in the United States rose against expectations, tempering a rally driven by news that another vaccine against COVID-19 had proved effective in trials. West Texas Intermediate crude was down 14 cents, or 0.3%, at $44.77 a barrel, after rising more than 4% on Tuesday. Brent crude was yet to trade, having risen almost 4% in the previous session. The contracts closed at their highest since early March on Tuesday, after a three-day rally pushed prices up around 8%. AstraZeneca AZN.L said on Monday its COVID-19 vaccine was 70% effective in trials and could be up to 90% effective, providing another weapon in the fight to control the pandemic after positive results from other major pharmaceutical developers. That makes it likely that the group known as OPEC+ will continue production cuts into 2021 after a meeting set to start on Nov. 30 following technical talks this week. Organization of the Petroleum Export Countries (OPEC) and other producers such as Russia in the OPEC+ grouping have been withholding supplies to support prices after pandemic lockdowns earlier this year caused an evaporation in demand.

Source : Investing
News Archives: