Wednesday, 16 December 2020

Brent oil hovers around $50/bl on vaccine optimism and weaker dollar | Reuters

Brent oil hovers around $50/bl on vaccine optimism and weaker dollar | Reuters

Oil prices edged lower on Wednesday after a surprise gain in U.S. crude inventories and tighter coronavirus lockdowns in Europe but a weakening dollar and progress on the rollout of COVID-19 vaccines offered support.

Brent crude futures were down 13 cents, or 0.26%, to $50.63 a barrel by 1421 GMT. U.S. West Texas Intermediate (WTI) crude futures fell 15 cents, or 0.31%, to $47.47.

“A weak dollar is helping support the price but the market is riding a wave of vaccine optimism. Yesterday, we had a strong rally due to the impending approval of a second COVID-19 vaccine,” said Harry Tchilinguirian, head of commodity research at BNP Paribas.

“The market is looking further ahead to the recovery instead of near-term low oil demand.”

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