Oil is Declining as Investors Welcome The Good News of The Vaccine

Oil prices fell in early transactions on Wednesday, December 2, but recovered some losses later after news indicating that Britain has become the first country in the world to agree to use a vaccine for Covid-19, which will start from next week.

Prices fell earlier after an unexpected build-up in US oil stocks and confusion in the markets after OPEC and its allies postponed a formal meeting to decide on increasing production in January.

Brent crude futures were down 8 cents, or 0.2%, to $ 47.34 a barrel, while US West Texas Intermediate crude fell 14 cents, or 0.1%, to $ 44.41 a barrel.

The American Petroleum Institute data revealed that US crude inventories increased 4.1 million barrels last week, compared with analysts’ expectations in a Reuters poll of a decrease of 2.4 million barrels.

This came after the Organization of the Petroleum Exporting Countries (OPEC), Russia and other allies, or the bloc known as OPEC +, announced the postponement of talks on oil production policy next year until tomorrow, Thursday, instead of Tuesday, according to sources.