Crude oil prices (November 27)

The sun sets behind Shiprock Mountain, a pumpjack and the San Juan Generating Station near Farmington, N.M. New Mexico, US on November 8, 2004. . (Photo Credit: Dave Watson/ AP File)

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SULAIMANI — Crude oil prices were down on Friday (November 27) compared with the previous day.

The price of Brent crude was at $47.64 down from $48.95 and US WTI crude was at $44.84 down from $45.98.

But questions have been raised over the so-called “vaccine for the world” as several scientists have sounded doubts over how robust the results of the trials were.

Both benchmarks have risen about 6% this week, after AstraZeneca earlier announced that its COVID-19 vaccine could be up to 90% effective, adding to successful trial results of two others under development in the fight to end the worst pandemic in a century.

“With much of oil’s rally in November built on expectation, sentiment and speculative fast money, some sort of correction was long overdue,” said Jeffrey Halley, senior market analyst at OANDA.

“A thin market and the OPEC+ ministers meeting on Monday seem to have been the precursors for traders to lighten bullish positioning,” he said.

The Organization of the Petroleum Exporting Countries (OPEC) and other producers including Russia that make up the OPEC+ grouping are leaning towards delaying next year’s planned increase in oil output, three sources close to OPEC+ said.

OPEC+ was planning to raise output by 2 million barrels per day (bpd) in January – about 2% of global consumption – as it moves to ease this year’s record supply cuts. OPEC+ ministers are due to meet from Monday.

Rising Libyan output is contributing to concerns about oversupply in the market as many people are ignoring lockdown advice and travelling.

Nearly 6 million Americans took air trips from Friday to Wednesday in advance of the Thanksgiving break as they ignored advice from the Centers for Disease Control to stay home, the U.S. Transportation Security Administration said.

(NRT Digital Media/Additional Reporting By Reuters)