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Oil prices soar about 8% as a result of promising coronavirus vaccines

Laila Kearney

New York (Reuters)-Oil surges about 8% on Monday to the largest daily increase in more than six months after Pfizer announces promising results for the COVID-19 vaccine and boosts risk assets around the world I got on track.

Brent crude US West Texas Intermediate Crude Oil rose $ 3.11 (7.9%) to $ 42.56 a barrel at 1:35 pm EDT (1835 GMT). It rose by $ 3.31 (8.9%) to $ 40.45.

Both contracts rose more than $ 4 early in the session, trading more than 120% of the volume of the previous session.

Jim Ritterbush of Houston’s Ritterbush and Associates said, “The oil complex keeps track of stocks higher, joining the bullish euphoria of today’s optimistic vaccine headlines and weekend election results. I have. “

Pfizer Based on initial data from large studies, the experimental vaccine is more than 90% effective in preventing COVID-19, fighting a pandemic that has been forced to block worldwide and led to lower fuel demand. Said he won.

Wall Street, where oil prices often continue, has reached a record high since its announcement.

Meanwhile, Saudi Arabia said OPEC +’s oil production agreement could be adjusted to balance the market. Prince Abdulaziz bin Salman, Minister of Energy of the Kingdom, said that if consensus could be reached among the members of the group, OPEC +’s arrangements on reducing oil production could be adjusted, with the prospect of tight supply and rising oil prices. I raised it.

OPEC +, which includes OPEC countries, Russia and other producers, is currently cutting 7.7 million barrels (bpd) per day, with a reduction from January to 5.7 million barrels / day. I am considering it. If OPEC + maintains current production restraints, it will tighten supply and lead to higher prices.

(Graphics: Global Oil Supply and Demand-https: //fingfx.thomsonreuters.com/gfx/ce/oakpenrxzvr/EIA%20oil%20supply%20and%20demand.PNG)

Key OPEC members are wary of Joe Biden’s mitigation measures in the US presidential election against Iran and Venezuela. This means increased oil production, which can make it difficult to balance supply and demand.

“President Biden increases the likelihood that Iran’s oil supply will return to the market, but we believe this is not going to happen overnight, but likely the end of the 2021/2022 event.” ING said in a memo.

(Additional report by Bozorgmehr Sharafedin in London and Florence Tan in Singapore, edited by Marguerita Choy and Chris Reese)

(Only the headlines and photos in this report may have been reworked by Business Standard staff. The rest of the content is automatically generated from the syndicate feed.)

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Oil prices soar about 8% as a result of promising coronavirus vaccines

Source link Oil prices soar about 8% as a result of promising coronavirus vaccines

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