Wednesday 25 November 2020

Oil shrugs off inventory gain amid sustained vaccine rally | Reuters

Oil shrugs off inventory gain amid sustained vaccine rally | Reuters

Oil rose for the fourth straight session on Wednesday as the market shrugged off an industry report showing U.S. crude stockpiles rose more than expected, extending a rally driven by hopes that a COVID-19 vaccine will boost fuel demand.

Brent crude was up 44 cents, or 0.9%, at $48.30 a barrel by 0743 GMT, having risen almost 4% in the previous session. West Texas Intermediate crude gained 33 cents, or 0.7%, to $45.24, after rising more than 4% on Tuesday.

Both contracts are at their highest since early March and have rallied around 9% in the last four days.

“With an orderly Presidential transition in sight, vaccine boosters and expectations that OPEC+ will extend production cuts next week, oil markets completely ignored the unexpected 3.8 million-barrel climb in API U.S. crude inventories,” said Jeffrey Halley, senior market analyst at OANDA.

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