Benzinga | Nov 12, 2020 03:58AM EST

Oil Prices Rise On Hopes Of OPEC+ Extending Supply Curbs

Crude oil prices have gained more than 11% during the week after news of Pfizer Inc. (NYSE:PFE) vaccine's efficacy on Monday. Rising COVID-19 cases have also raised hopes of the market with expectations of major oil producers holding off the planned crude oil supply increase until January, Reuters reports.

The WTI crude futures are trading higher by 0.53% to $41.67 and the Brent oil futures have advanced by 0.52% to $44.03 on the last check Thursday.

Algeria's energy minister, Abdelmadjid Attar, said on Wednesday that the Organization of the Petroleum Exporting Countries and allies led by Russia (OPEC+) could extend oil production cuts into 2021 or deepen further if needed, Reuters noted.

OPEC+ was due to reduce the current cut of 7.7 million barrels per day (BPD) by 2 million BPD in January. Attar said last week that the group is considering an extension until the end of March.

Saudi Arabia's energy minister said that the planned cuts deal could be "tweaked" if there is consensus among members.

OPEC+ trimmed its 2021 oil demand growth forecast, citing soaring COVID-19 cases.

Why It Matters: As oil prices rose during the week on positive vaccine news, the National Australia Bank's head of commodity research, Lachlan Shaw, said, "it will take time for vaccines to be rolled out, and therefore it will take time for demand to be positively impacted by that."

According to Shaw, the fuel demand remains under pressure from surging infections in Europe, the United States, and Latin America.

OPEC+ had said that the demand in 2021 would rebound slower than thought previously.

Crue Oil ETFs to Watch: The United States Oil ETF (NYSE:USO), United States 12 Month Oil Fund (NYSE:USL), United States Brent Oil Fund (NYSE:BNO), Invesco DB Oil ETF (NYSE:DBO).