After a rise of more than 2.4 percent a day earlier, oil traded in green on Tuesday, November 17, with a rise of 0.1 percent to settle at $41.13.
Support for oil prices was provided by news of the positive results of the Moderna coronavirus vaccine tests, which showed 94.5% efficacy.
Moreover the expectations of market participants that OPEC+ will extend current oil productions quotas for at least the first quarter of 2021 lead to the growth of black gold quotes. A meeting of the ministerial committee of the organization was also held, after which the organization shared its future strategy of extending the production cuts for market rebalancing. Discipline concerns are also addressed, as at the end of October, the transaction execution rate was just 96 percent.
Around the same time, in the medium term, there are always supply-side threats to the oil market. Thus, production levels in Libya have surpassed the pre-war blockade average of 1.2 million barrels per day, a very large amount for the world market. The oversupply factor can put some pressure on oil prices before coronavirus vaccines are accessible to the general public.
In the United States, where the number of active rigs has risen for eight consecutive weeks, the growth of operation in the oil industry is also observed. In view of the difficult pandemic situation in the United States, an increase in production could lead in the coming months to the accumulation of reserves in oil storage facilities, which could also have a negative effect on oil prices.
The price of Brent crude oil has been set above the $43.5 mark, which is a signal for the upward trend to begin. The stochastic lines, however, are in the overbought region, which suggests that the instrument has limited growth potential in the short term.
Gold prices continue to consolidate below the level of $1,900 on Tuesday at $1,885.10 after a fall of 0.1 percent.