Crude awakening

25 Nov 2020 By George Hay Follow @gfhay

Multiple Covid-19 vaccines have lifted crude prices to March levels on hopes of an economic recovery. Producers may now pump like crazy, but renewed declines look less likely. Meanwhile, Big Oil’s virus-driven cuts to new supply should prop up prices further down the line.

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Brent crude prices hit their highest level since in March on Nov. 24, rising above $47 a barrel as the latest promising coronavirus vaccine raised demand recovery hopes and U.S. President-elect Joe Biden received the go-ahead to begin his transition.

As of 0939 GMT on Nov. 25, Brent crude was up 1.2% at $48.45 a barrel, while U.S. West Texas Intermediate crude was up 0.7% at $45.20 a barrel.

OPEC+, as the group of oil exporters and its allies such as Russia is known, is expected to roll over production cuts agreed in March into 2021 after a meeting over Nov. 30 to Dec. 1.

BP shares rose 8.4% on Nov. 24 to 274.8 pence. Exxon Mobil, Total and BP all rose about 6% as of 1900 GMT; Chevron was up 4.9%.

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