Oil prices rose on Tuesday, extending gains in the previous session driven by more progress in efforts to develop a Covid-19 vaccine reported.
Most recently, Moderna Inc said the third phase of the trial data at the initial ranking of the vaccines being attempted had shown more than 94% of compulsion to prevent the Covid-19 outbreak.
This has again raised market expectations of potential vaccine yields and is helping to offset the uncertainty over weak global demand due to the continuing increase in coronavirus cases around the world.
In addition, positive market sentiment was also supported by the expectation that OPEC + will continue its commitment to cut crude oil spending for at least 3 months.
The group will hold a meeting of the Joint Ministerial Monitoring Authority (JMMC) today which may provide clues to the OPEC + decision at its November 30 meeting.
Quoting reliable sources, Reuters reported that most members of the group expressed support to continue at least 3 months in their current spending reduction commitments, which is 7.7 million barrels a day.
Early in the European session, the trading front of Brent oil was trading up at $ 44.05 a barrel, while United States WTI nosedived at $ 41.47 a barrel.
