* Pfizer says its COVID-19 vaccine is 95% effective
* Saudi Arabia urges OPEC+ to be flexible on output
* U.S. crude stocks rise, distillate inventories plunge -EIA
(Updates prices)
By Devika Krishna Kumar
NEW YORK, Nov 18 (Reuters) - Oil prices firmed by about 2%
on Wednesday on hopes OPEC and its allies will delay a planned
increase in oil output and after Pfizer said its COVID-19
vaccine was more effective than previously reported.
The market was also supported by a smaller-than-expected
increase in U.S. crude stockpiles last week.
Brent crude LCOc1 rose 93 cents, or 2.1%, to $44.68 a
barrel by 12:47 p.m. ET (1747 GMT,) while U.S. West Texas
Intermediate crude CLc1 gained 65 cents, or 1.6%, to $42.08.
Both contracts jumped by about $1 after Pfizer Inc PFE.N
said that final results from late-stage trial of its vaccine
showed it was 95% effective. Last week it had put the efficacy
at more than 90%.
Moderna Inc MRNA.O on Monday said that preliminary data
for its vaccine also showed it was almost 95% effective.
"Oil prices today are modestly rising on hopes that OPEC+
will decide to postpone its planned production increase in
January and on the latest vaccine euphoria," said Rystad
Energy's head of oil markets, Bjornar Tonhaugen.
To tackle weaker energy demand amid a second wave of the
pandemic, Saudi Arabia called on fellow members of the OPEC+
group to be flexible to meet market needs and to be ready to
adjust their agreement on output cuts. OPEC+, comprising the Organization of the Petroleum
Exporting Countries, Russia and other producers, met on Tuesday
but made no formal recommendation. The group is due to discuss
policy at a full ministerial meeting to be held on Nov. 30 and
Dec. 1.
Members of OPEC+ are leaning towards delaying the current
plan to boost output in January by 2 million barrels per day
(bpd), sources have said. They are considering a possible delay
of three or six months. In the United States, crude inventories USOILC=ECI rose
768,000 barrels last week, compared with analyst expectations in
a Reuters poll for a 1.7 million-barrel rise. Distillate
stockpiles, which include diesel and heating oil, fell by 5.2
million barrels, far exceeding expectations. EIA/S
"There's concern about gasoline demand, but overall
inventories, including diesel stocks, fell, giving credence to
the efforts of OPEC+ and reduced overall crude production," said
Tony Headrick, energy markets analyst at CHS Hedging.