WTI crude futures extended early gains rising more than 4% to trade around $41.8 a barrel on Monday, close to an over two-month high touched in the previous week boosted by hopes of a coronavirus treatment after Moderna Inc announced that its experimental vaccine is more than 94% effective in preventing the infection. Earlier gains were supported by prospects that OPEC+ will hold current output curbs. The cartel has been cutting production by about 7.7 million barrels per day, with a compliance rate seen at 101% in October, and is planning to increase output by 2 million bpd from January.
At the same time, strong economic data from both China and Japan supported prices with China’s oil crude refining rising to 14.14 million bpd in October and matching a record set in June. OPEC+ is due to hold a ministerial committee meeting on Tuesday which could recommend changes to production quotas when all the ministers meet at the end of the month.
