Friday 11 December 2020

Oil extends rally amid coronavirus vaccine rollouts | Reuters

Oil extends rally amid coronavirus vaccine rollouts | Reuters

Oil rose on Friday, adding to sharp gains overnight that saw Brent top $50 for the first time since March, as the rollout of coronavirus vaccination programmes fed hopes that demand for fuel would rebound up next year.

Brent was up 30 cents or 0.6% at $50.55 a barrel by 0752 GMT, after gaining nearly 3% on Thursday. U.S. oil was up 31 cents, or 0.7%, at $47.09 a barrel, having also risen almost 3% in the previous session.

The benchmarks are set for a sixth consecutive week of gains as promising vaccine trials helped quell gloom over record increases in the number of new infections and deaths around the world in the coronavirus pandemic.

Britain began inoculations this week and the United States could start vaccinations as early as the coming weekend, while Canada on Wednesday approved its first vaccine with initial shots due from next week.

“Crude prices are surging in anticipation of the FDA’s potential approval of Pfizer’s vaccine, as Asia’s economic recovery is making Chinese and Indian refiners acquire more oil,” said Edward Moya, senior market analyst at OANDA.

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