Oil Extends Gains On Vaccine Hopes

23.11.2020 09:18 (UTC +0)

Oil prices climbed on Monday as more positive news on the vaccine front raised hopes about a recovery in fuel demand.

Benchmark Brent crude jumped 1.8 percent to $45.86 a barrel, while U.S. West Texas Intermediate crude futures were up 1.6 percent at $43.09.

Both benchmarks soared 5 percent last week amid positive news about the efficacy of coronavirus vaccines and hopes that the Organization of the Petroleum Exporting Countries, Russia and other producers will keep crude output in check.

Positive sentiment continues to be driven by the recent good news about the efficacy of coronavirus vaccines in development.

After a string of encouraging vaccine results in recent weeks, the Oxford University and British pharmaceutical giant AstraZeneca announced that their vaccine for the novel coronavirus could be around 90 percent effective under one dosing regimen.

"Today marks an important milestone in our fight against the pandemic. This vaccine's efficacy and safety confirm that it will be highly effective against Covid-19 and will have an immediate impact on this public health emergency," AstraZeneca chief executive Pascal Soriot said in a statement.

One dosing regimen (n=2,741) showed vaccine efficacy of 90 percent when AZD1222 was given as a half dose, followed by a full dose at least one month apart, and another dosing regimen (n=8,895) showed 62 percent efficacy when given as two full doses at least one month apart.

The combined analysis from both dosing regimens (n=11,636) resulted in an average efficacy of 70 percent, it was said.

OPEC meets on November 30 and December 1 and it seems investors have already factored in a three-month delay of production increases.

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