Oil rose above $49 a barrel on Thursday as hopes of a faster demand recovery after the release of COVID-19 vaccines offset a huge rise in U.S. crude inventories that showed supply remains ample.
Britain began vaccinations this week and they could start as soon as this weekend in the United States. Canada on Wednesday approved its first vaccine and said initial shots would be delivered starting next week.
Brent crude was up 35 cents, or 0.7%, to $49.21 a barrel at 0920 GMT, rising for a third day. U.S. West Texas Intermediate (WTI) crude rose 22 cents, or 0.5%, to $45.74.
Oil gained even after the latest weekly report on U.S. oil inventories showed a massive, 15.2 million-barrel rise in crude stocks. Analysts had expected a 1.4 million-barrel drop. [EIA/S]
“The latest set of data has exceeded any bearish expectations,” said Tamas Varga of oil broker PVM. “The stubbornness of oil bulls and their confidence in the positive economic impact of the vaccine roll-out are truly remarkable.”
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