Oil gains after stockpile draw amid hopes for coronavirus vaccine

AFP  File

US West Texas Intermediate (WTI) crude futures edged up 16 cents, or 0.4 per cent, to US$40.45 a barrel by 0805 GMT, while Brent crude futures rose 9 cents, or 0.2 per cent, to US$42.49.

Oil prices rose sharply on Wednesday as positive news on a Covid-19 vaccine continued to boost sentiment and industry data showed US crude inventories dropped more than expected last week. Investors who are wary of the coronavirus as we head deeper into the reportedly more perilous winter months see the vaccine as a boon for oil, which could help to shore up a fragile USA economy.

Both benchmarks rose by almost 3% on Tuesday.

Crude futures (CL=F) climbed to their highest level since the start of September on Wednesday, while Brent futures (BZ=F) were also at a multi-month high.

Both contracts jumped 8% on Monday, in their biggest daily gains in more than five months, after drugmakers Pfizer PFE.N and BioNTech 22UAy.F said an experimental COVID-19 treatment was more than 90% effective based on initial trial results.

Oil prices rose over 1% on Wednesday following a report stating that USA crude inventories have declined beyond expectations.

Fox News cuts away from McEnany press conference
On Monday, White House Press Secretary Kayleigh McEnany was explaining voter fraud issues during a press conference. McEnany indicated, without information, that Democrats greeted "fraud" and "criminal voting" in the 2020 election.

Crude oil prices rose sharply on Monday and Tuesday supported as coronavirus vaccine optimism revived hopes for a steady rebound in the global energy demand.

The expectation that a vaccine could restore demand for transportation fuels is critical for oil, said John Kilduff, founding partner at Again Capital.

However, analysts say renewed lockdown measures in European to contain the coronavirus infections still appear set to affect the outlook for global oil demand.

With COVID-19 cases rising and prices under pressure, Algeria has said it supports keeping the current cuts in place while Saudi Arabia this week said that the deal could be tweaked, perhaps beyond what analysts expect.

"While a Biden presidency increases the likelihood of Iranian oil supply returning to the market, this is not something that will happen overnight, and we still believe it's more likely an end of 2021/2022 event", ING said in a note. While there has been optimism over a potential vaccine in the USA, the key reasons for the fall in demand for this year are the recent fresh lockdowns and curfews in many key European economies such as the UK, France, Germany, and Italy.

Related News:

Most liked

ByteDance asks USA court to intervene in forced TikTok sale
TikTok said it has offered detailed solutions to the CFIUS in almost two months, but has not received substantive feedback. Despite finding new owners in Oracle Corp. and Walmart Inc., TikToK now faces uncertainty as Trump's date comes closer.

Coronavirus hospitalizations in the United States reach record high, data shows
The second wave has seen cases spike shockingly fast, with nearly 10 million cases recorded in just one month earlier this year. Covid-19 patients occupied 36% of all intensive therapy units and 51% of hospital beds across the country.

Jason Momoa was in debt and ‘starving’ after 'GoT'
The actor though got overnight fame after he featured in the titular role in " Aquaman " which released in 2018. With the post, Gene Simmons showed that he is agree with Jason Momoa's words about wearing pink.

Online news, streaming platforms to be regulated by Information and Broadcasting Ministry
This news comes days after the Supreme Court sought Centre's response on a PIL that was seeking regulations on OTT platforms. This will give the government control over OTT platforms, which were unregulated till now.

Democrats secure control of House of Representatives with reduced majority
President-elect Joe Biden leads President Donald Trump by about 14,000 votes out of almost 5 million votes counted in the state. The Secretary of State said the result of the audit would be certified by November 20, which is Georgia's deadline to do so.

Hong Kong Pro-Democracy Lawmakers Quit After Colleagues Expelled
Critics have said Beijing is reneging on the "one country, two systems" arrangement that is supposed to be in place until 2047. On Monday, pro-democracy lawmakers threatened to resign en masse over reports that Beijing could seek to have them removed.

Nitish-led NDA retains power in Bihar, RJD single-largest party
He thanked the people and election officials for ensuring a smooth polling process, even amid the coronavirus crisis. However, Chirag's LJP, which gained two seats in 2015, could only clinch one seat for the party.

Google Photos is pulling plug on free unlimited photo storage
Thankfully, there are options and the main option I'd like to highlight is one that we've covered numerous times. This change applies to all users of Google Photos across all platforms, including Android, iOS, and desktop.

Here’s everything Apple announced at its ‘One more thing’ event
Besides the laptops, Tuesday's event also unveiled Apple's new Mac Mini , which offers up to 3x faster CPU than the previous Mini. What will the new Macs cost? Apple reached record fiscal fourth quarter Mac sales of $US9 billion ($12.3 billion) this month.

USA defence chief Mark Esper 'terminated'
Esper's predecessor, Jim Mattis, quit in 2018 over policy differences with Trump, including on Syria. President Donald Trump took to Twitter to announce that he had booted Defense Secretary Mark T.

Apple Mac mini M1 brings new power to the desktop
With M1, you'll get eight cores that can allegedly match "peak PC performance" using just 25 percent of the power. Apple says the new MacBook Air brings improved performance, up to 18 hours of battery life, and power efficiency.

Trump to lose special Twitter protections in January
Madam Tussauds London Redresses Donald Trump's Wax Statue in a Golfing Attire; Calls It His "Potential 2021 Wardrobe" . Much has been speculated about the marriage of Donald and Melania Trump .

Police report reveals details of Tony La Russa's DUI arrest
The officer described him as "argumentative" and said La Russa refused to submit to breath, blood or urine tests. La Russa's exchange with the arresting officer was recorded in the police report, which was obtained by ESPN .

Thousand fleeing fighting in Ethiopia’s Tigray region cross into Sudan
Prime Minister Abiy, who won the Nobel Peace Prize previous year , ordered the military to carry out air strikes in Tigray last week.

Scooby Doo Co-Creator Ken Spears Dies Aged 82
Spears is survived by his two sons, Kevin and Chris; their wives, his 5 grandchildren and his three great-grandchildren. We here at CinemaBlend extend our thoughts to the family and friends of Ken Spears during this time.