Oil rises on COVID-19 vaccine hopes

Oil prices rose on Monday as investors were optimistic about improving crude demand amid successful coronavirus vaccine trial results. However, gains were capped by renewed lockdowns in many countries. 

Adding to the sentiment boost was OPEC and its allies’ decision to keep crude output in check.

Brent crude futures gained 0.4%, or 17 cents, at $45.13 per barrel. U.S. West Texas Intermediate crude rose 0.1%, or 4 cents, at $42.46 per barrel. Both contracts had risen 5% last week.

U.S. healthcare workers suggested that the country’s first COVID-19 vaccination could begin a day or two after the regulatory consent is approved next month. 

Meanwhile, OPEC+, which is set to meet on Nov. 30 and Dec. 1, is considering delaying their planned 2 million bpd increase in production. The group will maintain its 7.7 million bpd cut by at least three months from January.