22 C
Georgetown
Thursday, February 25, 2021

Brent oil futures jump above $44 on vaccine news

Must Read

Fifty-seven days later: Bulletwood-1 drill campaign wrapping up

The Stena Carron drillship is wrapping up operations at the Bulletwood-1 prospect offshore Guyana on the Canje Block where...

Saipem gets award for tool that can estimate CO2 in its offshore projects

Italian multinational oilfield services company Saipem has won the Environmental Sustainability Award in International Marine Contractors Association’s (IMCA) 2020 Awards programme,...

Stena DrillMAX to target Turbot/Longtail appraisal operation, new campaign at Whiptail-1

The 6th Generation Harsh Environment dual activity dynamically positioned (DP3) drillship, Stena DrillMAX, is now in Guyana waters and...
OilNOW
OilNow is an online-based Information and Resource Centre which serves to complement the work of all stakeholders in the oil and gas sector in Guyana.

(Reuters) – Oil prices jumped more than 4% on Monday, recouping the previous session’s losses after Moderna Inc said its experimental vaccine was 94.5% effective in preventing COVID-19.

Brent crude futures for January were up $1.79, or 4.2%, to $44.57 a barrel by 1420 GMT, while U.S. West Texas Intermediate crude for December was up $1.84, or 4.6%, at $41.97.

“Vaccine euphoria has already been priced in heavily since last week, but a second remedy to COVID-19 shows that a large-scale vaccination programme, with sufficient amounts for the global population, is somewhat closer now,” said Rystad Energy analyst Louise Dickson.

The announcement by Moderna comes after Pfizer Inc reported last week that its vaccine was more than 90% effective, raising hopes that pandemic-driven damage to the global economy could be reduced.

Prices were also buoyed by data showing a rebound in China and Japan, with figures showing that Chinese refineries processed record daily levels of crude in October.

Both WTI and Brent gained more than 8% last week on hopes of a vaccine and expectation that the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, would maintain lower output next year to support prices.

The group, known as OPEC+, has been cutting production by about 7.7 million barrels a day (bpd), with compliance seen at 96% in October, and had planned to increase output by 2 million bpd from January.

OPEC+ is set to hold a ministerial committee meeting on Tuesday that could recommend changes to production quotas when all the ministers meet on Nov. 30 and Dec. 1.

“There is no denying that the oil market is fully in the hands of OPEC+,” said SEB chief commodity analyst Bjarne Schieldrop. “The organisation is the only reason why oil prices today are not $20 a barrel. As such, their upcoming meeting on Nov 30-Dec 1 is no less hugely important.”

Latest News

Fifty-seven days later: Bulletwood-1 drill campaign wrapping up

The Stena Carron drillship is wrapping up operations at the Bulletwood-1 prospect offshore Guyana on the Canje Block where...

Stena DrillMAX to target Turbot/Longtail appraisal operation, new campaign at Whiptail-1

The 6th Generation Harsh Environment dual activity dynamically positioned (DP3) drillship, Stena DrillMAX, is now in Guyana waters and will begin operations with a...

Exxon’s reserves hit lowest point since merger with Mobil in 1999

(Reuters) - Exxon Mobil Corp’s global oil and gas reserves tumbled by a third last year as the COVID-19 pandemic slammed global oil prices...

Saipem gets award for tool that can estimate CO2 in its offshore projects

Italian multinational oilfield services company Saipem has won the Environmental Sustainability Award in International Marine Contractors Association’s (IMCA) 2020 Awards programme, for an innovative CO2 estimation...

Government working with Exxon to ensure early solution to gas compressor issue – Bharrat

The Guyana government is working with ExxonMobil to ensure that the faulty third stage gas compressor now under repairs in Germany, is fixed as...

More Articles Like This