(Updates prices)
By Aaron Sheldrick
TOKYO, Nov 27 (Reuters) - Oil prices were lower on Friday in
quiet trade due to the U.S. Thanksgiving holiday, dropping amid
concerns about oversupply and doubts about a vaccine to end the
coronavirus pandemic.
Brent crude was down by 31 cents, or 0.7%, at $47.49
by 0758 GMT, having fallen 1.7% overnight. West Texas
Intermediate was down by $1.02, or 2.2%, at $44.69. U.S.
crude prices did not settle on Thursday due to the holiday.
Both benchmarks have risen about 6% this week after
AstraZeneca said 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 pandemic.
But questions have been raised over the "vaccine for the
world", with several scientists sounding doubts over how robust
the results of the trials were.
"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.
(Reporting by Aaron Sheldrick; Editing by Stephen Coates and
Alexander Smith)