Oil Continues to Rise on The Launch of Vaccination

Oil rose today, Friday, to consolidate strong gains made overnight that saw Brent crude exceed $50 for the first time since March, as the implementation of coronavirus vaccination programs fueled hopes that demand for oil will rebound next year.

Brent crude rose 30 cents, or 0.6%, to $50.55 a barrel, after gaining nearly 3% on Thursday. US crude rose 31 cents, or 0.7%, to $47.09 a barrel, to $47.09 a barrel, after it had also increased nearly 3% in the previous session.

The two benchmarks are heading for gains for the sixth week in a row, as promising results from vaccine trials have contributed to easing pessimism about a record increase in the number of infected cases and deaths around the world due to the Coronavirus pandemic.

Britain began vaccination this week and the United States may begin vaccination as early as next week, perhaps next weekend, while Canada approved on Wednesday its first vaccine with first doses being offered starting next week.

A committee of advisors outside the US Food and Drug Administration voted in favor of using a vaccine produced by Pfizer, paving the way for the administration to authorize its use for vaccination in the country that has lost more than 285,000 people to Covid-19.

A big jump in US crude stocks played a role as a reminder that there is still a lot of supply available, but that has been completely ignored as investors bet on the market’s rally this week.

There are encouraging signs that demand in Asia is strong, with India’s largest refiner saying it is operating at 100% capacity for all nine units for the first time since early this year.