Oil rises on hopes for COVID-19 vaccine, declining U.S. crude stocks | Reuters
Oil prices climbed on Wednesday as hopes of an effective COVID-19 vaccine continued to bolster sentiment and an industry report showed U.S. crude inventories fell more than expected.
Brent crude rose $1.17, or 2.7%, to $44.78 a barrel at 0925 GMT, while U.S. West Texas Intermediate (WTI) crude added $1.17 cents, or 2.8%, to $42.53 a barrel. Both benchmarks gained nearly 3% on Tuesday.
“This week’s news about a coronavirus vaccine was encouraging and, alongside short-covering activity, strongly supported oil prices on Monday and Tuesday,” said Giovanni Staunovo, oil analyst for UBS.
The bank cautioned that European lockdowns and restored Libyan oil output could weigh on prices in the short term, but forecast oil at $60 a barrel by the end of 2021 based on the likelihood that producers would continue to rein in supply.
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