Oil pulls back from 8-month high as profit-taking continues

Oil prices fell on Friday, deepening losses for the second straight day, pulling back from an 8-month peak on correction and profit-taking activity, but prices on the cusp of fourth weekly gain in a row, thanks to the Covid vaccines results, and odds for OPEC-Plus to delay the planned output hike scheduled early next year.

US crude fell 0.6% to $44.58, after opening at $44.87, and hit a session high of $45.11, and Brent crude fell 0.9% to $47.37 a barrel, after opening at $47.82, with a high of $48.02.

US crude lost 1.9% yesterday on profit-taking from its 8-month peak at $46.24.

Brent crude futures fell 3.3%, on profit-taking from the highest since March 6 of $49.06.

Oil prices gained more than 6% so far this week, posting the fourth straight weekly gain, in the longest weekly gains streak since late July.

These gains came thanks to optimism about Covid-19 vaccines that will finally help in putting an end to the pandemic that has severely impacted the global demand for fuel.

According to the latest medical research, a Covid-19 vaccine could be available before the end of this year, which will finally help in putting an end to the pandemic that has severely impacted the global demand for fuel.

Those gains also came after concerns about a smooth transition of power in the US  eased following the US President-elect Joe Biden's welcoming the outgoing President Donald Trump's decision to take the necessary measures to transfer power.

Reuters reported that the collation is prone to delaying the planned increase in output that is scheduled for early next year.

This increased odds that the coalition will delay the next year's planned output hike for at least 3 months in the upcoming official meeting on November 30 and December 1.

OPEC-Plus is currently implementing the second phase of the cut agreement, cutting about 7.7 million bpd until the end of December, and will be lowered to 5.7 million bpd in phase three, starting from January 2021 until April 2022.