UPDATE 10-Oil soars 8% on promising COVID-19 vaccine results

* Pfizer says its COVID-19 vaccine is more than 90%
effective
* Saudi oil minister says OPEC+ output deal could be tweaked
* OPEC wary of Biden relaxing sanctions on Iran,
Venezuela-sources

(New throughout, updates prices, market activity and comments
to settlement)
By Laila Kearney
NEW YORK, Nov 9 (Reuters) - Oil surged about 8% on Monday,
its biggest daily gain in more five months, after Pfizer
announced promising results for its COVID-19 vaccine.
Brent crude LCOc1 settled at $42.40 a barrel, up $2.95, or
7.48%, while U.S. West Texas Intermediate crude CLc1 settled
at $40.29 a barrel, rising $3.15, or 8.48%.
Oil markets also rose after Saudi Arabia suggested it and
other oil producers could adjust its current supply-cut pact,
perhaps taking more barrels off the market if demand slumps in
the winter as infections rise and before the vaccine is widely
available.
Fuel demand is down worldwide as a result of the pandemic,
and with infections now surpassing 50 million globally, numerous
nations, especially in Europe, are reimposing lockdowns to slow
the virus's spread. The vaccine news gave traders hope that the
pandemic could be tamped down next year, which would help people
resume normal life, boosting demand.
"Oil particularly reacted to the news because of what it
means," said John Kilduff, partner at Again Capital in New York.
"The pandemic is hitting transportation terrifically and 80% of
crude oil barrels go to transportation fuel, so I think this is
a logical response."
Both contracts rose more than $4 earlier in the session as
traders sought to unwind bearish bets. Brent and WTI traded 148%
and 139% of last session's volumes, respectively.
Pfizer said its experimental vaccine was more than 90%
effective in preventing COVID-19, based on initial data, a
victory in the battle against a pandemic that has forced
lockdowns around the world. The OPEC+ group, which includes the Organization of the
Petroleum Exporting Countries and its allies, could adjust their
deal to balance the market, the kingdom's energy minister Prince
Abdulaziz bin Salman said. OPEC+ is currently cutting 7.7 million barrels per day
(bpd), and considering reducing those cuts to 5.7 million bpd
from January. If OPEC+ maintains the current curbs on output, it
would tighten supply and lead to higher prices.
Key members of OPEC are wary of U.S. President-elect Joe
Biden relaxing measures on Iran and Venezuela, which could mean
an increase in oil production that would make it harder to
balance supply and demand. "While a Biden presidency increases the likelihood of
Iranian oil supply returning to the market, this is not
something that will happen overnight, and we still believe it's
more likely an end of 2021/2022 event," ING said in a note.

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