Oil Prices Rise on Demand Concerns, Vaccination Slowing Down

Oil prices increased by more than a dollar during the European session, after a major sell-off witnessed in the previous session, as a new wave of Coronavirus cases across Europe triggered general isolation measures and dampened hopes for an imminent oil demand recovery.

Brent crude rose $ 1.01, or 1.6%, to $ 64.29 a barrel. US West Texas Intermediate crude rose $ 1.02, or 1.7%, to $ 61.02 a barrel.

Both contracts closed around 7% lower on Thursday as several major European economies re-imposed lockdowns, while vaccination programs slowed due to distribution problems and concerns about potential side effects.

Although Germany, France and other countries announced the resumption of vaccination after regulators announced the safety of the AstraZeneca vaccine, the suspension of the campaign makes it more difficult to overcome the rejection of the vaccine by some residents.

The UK also announced that it would have to slow down the distribution of COVID-19 vaccines next month due to a delay in supplies.

Goldman Sachs said that adverse factors linked to demand from the European Union and Iran’s supplies would slow down the oil market’s recovery by 0.75 million barrels per day in the second quarter, although it expects to replace OPEC +.

Goldman expects a significant increase in global demand for oil in the coming months, while raising its forecasts for Brent crude to $ 80 a barrel this summer.