Crude oil prices jump over 4% on latest Covid-19 vaccine progress

Oil prices jumped more than 4 per cent on Monday, recouping the previous session’s losses after Moderna said its experimental vaccine was 94.5 per cent effective in preventing Covid-19.

Brent crude futures for January were up $1.79, or 4.2 per cent, to $44.57 a barrel by 7:50 pm (IST), while U.S. West Texas Intermediate crude for December was up $1.84 or 4.6 per cent to $41.97. 

“Vaccine euphoria has already been priced in heavily since last week, but a second remedy to Covid shows that a large-scale vaccination programme, with sufficient amounts for the global population, is somewhat closer,” said Rystad Energy analyst Louise Dickson.  

Prices were also buoyed by data showing a rebound in China and Japan, with figures showing that Chinese refineries processed record daily levels of crude in October. Both WTI and Brent gained more than 8 per cent last week on hopes of a vaccine and expectation that the Organization of the Petroleum Exporting Countries and its allies, including Russia, would maintain lower output next year to support prices.