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Oil falls back on tightening restrictions despite OPEC+ hopes

Oil falls back on tightening restrictions despite OPEC+ hopes

Oil prices fell back on Tuesday after being buoyed by expectations that OPEC+ producers would keep supplies tight and news of a second promising COVID-19 vaccine as tightening coronavirus-driven restrictions spurred caution. Brent and West Texas Intermediate crude were both up by about 40 cents before falling into negative territory.

Brent was down 3 cents, or less than 0.1%, at $43.79 a barrel by 1213 GMT while WTI was down 5 cents, or 0.1%, at $41.29. “Oil prices enjoy modest gains this morning, as enthusiasm over a new, seemingly more efficient, vaccine has led a new price rally,” said Rystad Energy’s head of oil markets, Bjornar Tonhaugen. “Now all eyes are on possible leaks from today’s OPEC+ technical meeting,” he added.

OPEC+, which groups the Organization of the Petroleum Exporting Countries, Russia and others, holds a ministerial committee meeting on Tuesday that could recommend changing quotas for next year when all the ministers meet on Nov. 30 and Dec. 1. OPEC+ has lowered its outlook on oil demand growth for 2021, a confidential document seen by Reuters shows, supporting the case for a tighter policy on output next year. Graphic: OPEC+ Scenarios and Impact on Oil Inventories –

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Source: SweetCrudeReports

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