Oil holds gains near 12-week high on US vaccination optimism

Crude oil has jumped almost 20% in November as pharmaceutical companies made rapid progress on readying anti-Covid drugs.Expectations that OPEC+ will
...
File photo used for representational purpose (REUTERS)
File photo used for representational purpose

Oil held gains near the highest level since early September in Asian trading as signs that Covid-19 vaccinations in the US could be underway within three weeks improved the demand outlook.

Futures in New York traded near $42 a barrel after capping their third straight weekly gain. Vaccinations will “hopefully" start as soon as December 11 or December 12, Moncef Slaoui, head of the American government’s Operation Warp Speed vaccine acceleration program, said on CNN on Sunday.

Also check these Vehicles

Find more Cars
Mahindra Ekuv100 (HT Auto photo)
UPCOMING
BatteryCapacity Icon40 kWh Range Icon150 Km
₹ 8.25 - 10 Lakhs
View Details
Porsche 911 Gt3 (HT Auto photo)
Engine Icon3996.0 cc FuelType IconPetrol
₹ 2.50 Cr
Compare
View Offers
Mahindra S204 (HT Auto photo)
UPCOMING
₹ 12 Lakhs
View Details
Lexus Nx (HT Auto photo)
Engine Icon2494.0 cc FuelType IconMultiple
₹ 64.90 - 71.60 Lakhs
Compare
View Offers
Rolls-royce New Ghost (HT Auto photo)
UPCOMING
Engine Icon6750 cc FuelType IconPetrol
₹ 6.95 - 7.95 Cr
View Details
Mercedes-benz Amg E53 Cabriolet (HT Auto photo)
Engine Icon2999.0 cc FuelType IconPetrol
₹ 1.30 Cr
Compare

Crude has jumped almost 20% in November as pharmaceutical companies made rapid progress on readying anti-virus drugs. Pfizer Inc. and BioNTech SE requested emergency authorization for their vaccine on Friday and Moderna Inc. released positive interim results from a final-stage trial and said it’s close to seeking emergency authorization.

Also Read : Oil tops $45 a barrel in London for the first time in 10 weeks

Optimism that relief from the pandemic is in sight has seen the market look past surging infections and more lockdown measures. The U.S. is now averaging almost 110,000 more daily cases than a month ago, while the opening of a Hong Kong-Singapore travel bubble has been delayed by two weeks due to an uptick in cases in the Chinese territory.

“We may see a continuing flurry of progress milestones on the vaccine front but it will be a tug of war with a likely worsening of the Covid situation in Europe and North America," said Vandana Hari, founder of consultancy Vanda Insights in Singapore. “The vaccines aren’t going to be able to prevent those waves."

Also Read : Drop in leisure driving stalls global recovery in fuel demand

Expectations that OPEC+ will agree to delay plans to add an extra 2 million barrels per day of output from January have also buoyed crude in recent weeks. The alliance will make a decision at a meeting at the end of the month.

The market optimism is being reflected in futures curves. Timespreads for WTI and Brent are moving closer to backwardation -- where near-term contracts are more expensive than later-dated ones -- an indication that concerns over a glut have eased. Brent’s prompt timespread was 9 cents a barrel in contango on Monday, compared with 48 cents at the end of October.

First Published Date: 23 Nov 2020, 10:04 AM IST
NEXT ARTICLE BEGINS

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city

Want to get the best price for your existing car?

Powered by: Spinny Logo
By clicking "View Offers" you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.