You are here: Home » International » News » Economy
Business Standard

Oil closes at highest level since March on vaccine trials, Biden transition

Brent crude settled at $47.86 a barrel, gaining $1.80, or 3.9%. U.S. West Texas Intermediate crude settled at $44.91 a barrel, rising $1.85, or 4.3%.

Topics
Crude Oil Price | Joe Biden | Coronavirus Vaccine

Reuters 

crude oil prices
Both benchmarks ended at their highest close since March 5

Oil rose about 4% on Tuesday to touch highs not seen since March as a third promising raised hope for fuel- demand recovery and US President-elect Joseph Biden began his transition to the White House.

Brent crude settled at $47.86 a barrel, gaining $1.80, or 3.9%. US West Texas Intermediate crude settled at $44.91 a barrel, rising $1.85, or 4.3%.

Both benchmarks ended at their highest close since March 5.

AstraZeneca on Monday said that its Covid-19 vaccine was 70% effective in trials and could be up to 90% effective, giving the fight against the pandemic another potential vaccine after positive results from Pfizer-BioNTech and Moderna.

However, the vaccine will not be readily available for several months, meaning people will likely restrict travel and other activities through next year to try to slow the spread of the disease.

ALSO READ: Joe Biden says US 'ready to lead' again, vows to work with allies

"The petroleum complex is the vaccine trade," said John Kilduff, partner at Again Capital in New York. "Until we can see the other side of the pandemic, the market is going to be mired in slack demand that is going to keep the overhang extensive." The coronavirus pandemic, coupled with the collapse of an OPEC-led output pact, sent prices crashing in March.

After the collapse of that output pact led to a brief Saudi Arabia-Russia price war, the Organization of the Petroleum Exporting Countries and allies agreed a new deal on record production cuts to support prices.

The group known as OPEC+ is expected to roll over those cuts into 2021 after meeting Nov. 30 to Dec. 1, following technical talks this week.

In addition, the Trump administration gave Democrat Joseph Biden access to resources that will enable him to take over in January after delaying for weeks despite Trump's loss in the Nov. 3 presidential election.

Biden's early selection of top advisers helped buoy crude futures and equities, which oil often follows.

The first of this week's US supply reports is due at 4:30 p.m. EST (2130 GMT) from the American Petroleum Institute.

US crude oil inventories are seen rising slightly last week, while distillate stockpiles likely declined for the 10th straight week, an extended Reuters poll showed.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, November 25 2020. 03:06 IST
RECOMMENDED FOR YOU
.