Oil Prices Rise Due to COVID-19 Vaccine News

Oil prices rose last Monday, extending the previous week’s 5% gains as traders anticipated coronavirus vaccine trials would spur a recovery in demand.

Sentiment was also bolstered by expectations that the Organization of the Petroleum Exporting Countries, Russia and other producers, a group known as OPEC+, would extend a deal to restrain output.

Brent crude rose 58 cents to 45.54 dollars a barrel while U.S. West Texas Intermediate crude gained 35 cents to 42.77dollars a barrel.

Outlook for demand has improved with news indicating progress towards developing COVID-19 vaccines.

A US official said the first inoculations in the United States could start a day or two after regulatory approval was secured.

Analysts said the news was detaching sentiment from “gloomy fundamentals,” adding, “Investors are ignoring near-term headwinds, chief among which are surging global COVID infections, and instead looking ahead to next summer.”

Source: https://www.gmanetwork.com/news/money/economy/765347/oil-prices-rise-on-covid-19-vaccine-news/story/

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