Oil Prices Rose on Optimism About Covid-19 Vaccine And Weakness of Dollar

Oil prices rose today, Wednesday, due to the decline of the dollar and the progress in the distribution of Covid-19 vaccines, but the gains were limited due to a sudden increase in crude oil inventories in the United States and the tightening of measures to combat Coronavirus in Europe.

Brent crude futures had increased 25 cents, or 0.5%, to $51.01 a barrel. US West Texas Intermediate crude futures rose 21 cents, or 0.4%, to $47.83 a barrel. On Wednesday, the dollar fell against a basket of currencies to its lowest level since April 2018.

Meanwhile, it appears that the Covid-19 vaccine produced by Moderna is in the process of obtaining regulatory approval this week after the US Food and Drug Administration declared it safe and effective.

At the same time, leaders in the US Congress announced significant progress in the crisis, a stimulus package to mitigate the months-long repercussions of Corona and a financing project to avoid a government shutdown.

But sentiment has been undermined by the increase in US crude stocks and the tightening of lockdown measures in Europe. The American Petroleum Institute said that US crude inventories increased by two million barrels in the week ending December 11, to about 495 million barrels.

The tightening of isolation measures in some European countries has cast a shadow over the demand for fuel.