Oil prices hit four-month highs on pandemic vaccine hope, EU stimulus deal

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Oil prices hit four-month highs on pandemic vaccine hope, EU stimulus deal

On Tuesday, both US WTI (West Texas Intermediate) crude and Brent crude futures’ prices had winded down the day with robust gains, rising more than $1 per barrel to breach their four-month highs, as an unprecedented boost from the EU pandemic stimulus deal alongside encouraging media headlines regarding pandemic vaccine trials had ramped up investors’ optimism.

Apart from a massive EU relief bill agreed earlier on Tuesday, a slash in OPEC+ output cut of 2 million barrels per day from current 9.7 billion per day starting from August announced later last week had added to further bullish wings to the investors’ prospect.

Oil jumps on €750 billion EU pandemic relief bill

In point of fact, both US and UK crude oil futures’ prices had opened up the day in a buoyant tone following reveal of the agreement among the leaders of European Union over an en masse €750 billion pandemic relief bill aimed at reviving the eurozone economy from the pandemic induced downturn, nonetheless, both crude oil futures’ prices pared some of their earlier gains late on the day after the American Petroleum Institute had reported that the US crude inventories had grown by 7.5 million barrels last week, beating an analysts’ expectation of a rise of 2.1 million barrels.

Citing statistics, on Tuesday’s commodity market round off, the UK crude futures’ prices had wrapped up the day 2.4 per cent higher to $44.32 a barrel, while the US West Texas Intermediate crude oil futures’ prices had surged 2.8 per cent to settle down the day at $41.96 per barrel.

Meanwhile, adding that the EU stimulus bill had amplified hopes of an extension of the US pandemic relief aid scheduled to be expired by end-July and had rekindled investors’ hope, Ritterbusch and Associates Chief Jim Ritterbusch said on the day’s commodity market closing bell, “Apparent progress on the U.S.

stimulus deal, the EU recovery agreement and progress toward a successful vaccine have all merged this week to kick up demand for risky assets”.