SINGAPORE- Oil prices edged higher on Tuesday on expectations OPEC and its allies will extend oil production cuts for at least three months, while sentiment was bolstered by news of another promising coronavirus vaccine.
Brent crude futures for January rose 16 cents, or 0.4 percent, to $43.98 a barrel and US West Texas Intermediate crude for December added 13 cents, or 0.3 percent, to $41.47 a barrel.
Equity markets rose on hopes of a quicker economic recovery after Moderna Inc said its experimental COVID-19 vaccine was 94.5 percent effective in preventing infection based on interim late-state data.
This comes after Pfizer Inc reported last week that its vaccine was more than 90 percent effective.
“If we judge economic recovery, particularly through the lens of oil markets… with multiple high efficacy vaccines in the pipeline, there is good chance mobility will return close to prepandemic levels later in 2021,” said Stephen Innes, chief global markets strategist at axi in a note.