Oil rises ahead of US crude inventories data

Oil prices continued to rise as the US market opened on Tuesday, in cautious trading after the OPEC-Plus coalition postponed its meeting for 48 hours, as disagreements increased between member states about the 2021 production policy, while the positive news about the coronavirus vaccines are still lifting market sentiment, as these vaccines are strongly expected to eliminate the global pandemic that has severely damaged global demand for fuel. Ahead the release of preliminary data on US crude inventories.

US crude rose 1.4% to $45.68 a barrel, after opening at $45.07, and hit a session low of $44.84, and Brent crude rose 1.3% to $ 48.28 a barrel, after opening at $47.65, with a low of $47.42.

US crude lost 1.1% yesterday, and Brent crude futures fell 1.25%, on profit-taking from the highest since in eight months.

Oil prices gained around 26% during November, the first monthly gain in 3 months, and the largest monthly gain since May.

This huge monthly gain came thanks to the positive news about the Covid-19 vaccines candidate, in addition to improved oil demand levels in Asia, especially from China and Japan, amid record compliance levels by the OPEC-Plus member states in implementing the global output cut agreement.

Reuters reported that the Organization of Petroleum Exporting Countries (OPEC) and its independent allies producers, led by Russia, postponed the meeting that was scheduled today for for 48 hours, after disagreements increased between member states about the 2021 production policy

The delay comes as large producers are still lagging behind on their quota from the production cut agreement amid weak demand due to the coronavirus pandemic.

The global coalition was scheduled to meet on Tuesday before delaying the meeting to Thursday after the ministerial meeting on Monday failed to reach any agreement.

The American company Moderna announced on Monday that its vaccine was 100% effective at preventing severe COVID-19 in the final analysis of the third and final stage of clinical trials.

The American Petroleum Institute will release its preliminary data on US crude inventories, and the Energy Information Administration will release its official report on Wednesday.