03.03.202109:44:00UTC+00Oil Prices Rally Ahead Of OPEC Meet

Oil prices rallied on Wednesday as signs of progress in the coronavirus vaccine rollout in the United States boosted hopes of a quicker global economic recovery from the coronavirus pandemic.

Meanwhile, speculation is rife that OPEC+ producers might decide against increasing output at a meeting this week.

Benchmark Brent crude jumped 1.7 percent to $63.75 a barrel, while U.S. West Texas Intermediate (WTI) crude futures were up 1.6 percent at $60.69 a barrel.

U.S. President Joe Biden said Tuesday that the U.S. expects to take delivery of enough coronavirus vaccines for all adults by the end of May, two months earlier than anticipated, after Merck & Co agreed to produce rival Johnson & Johnson's newly approved shot.

Biden also announced he would be using the powers of the federal government to direct all states to prioritize vaccinating teachers, and said the federal government would provide the doses directly through its pharmacy program.

OPEC+ meets on Thursday, with the latest reports suggesting that some key members are considering rolling over production cuts from March into April rather than raising output.

It was not immediately clear whether Saudi Arabia would end voluntary cuts in March or extend them further, Reuters said, citing sources.

Meanwhile, the American Petroleum Institute (API) reported late Tuesday that U.S. crude stocks rose by 7.4 million barrels for the week ended Feb. 26, in stark contrast to analysts' estimates for a draw of 928,000 barrels.