Oil climbs 1%, clocks third straight week of gains on vaccine hope

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Oil climbs 1%, clocks third straight week of gains on vaccine hope

On Friday, both US and Brent crude oil futures scheduled to be expired on December 21 reported a robust rise of 1 per cent to wrap up the third straight week of gains, mostly buoyed up over hopes of a couple of successful pandemic vaccine trials which in effect had been helping investors downplay the fiscal consequences of a second wave of pandemic outbreak alongside frets of a deluge of demand crunch across the globe.

Nonetheless, the renewed lockdown measures adopted in a number of European major economies alongside major US cities, had kept a lid on the gains.

Crude oil gains ground as vaccine hopes offset demand worries

If truth is to be told, it had been the remarks of American pharmaceutical giant Pfizer Inc.

which acted as a major market mover on Friday as the Cambridge-based Pfizer Inc., which had reported a 95 per cent efficacy on its late-stage human trial a couple of days earlier, was quoted saying that it would be applying for a US FDA authorization for emergency use of its pandemic vaccine as early as by Friday night, bolstering hopes of a way out from the blistering fiscal impact of the pandemic outbreak.

Aside from Pfizer Inc., a late-stage human trial of Moderna’s mRNA-based vaccine that had shown a 94.5 per cent efficacy in successfully blocking out the pandemic pathogen, had also boosted up oil markets this week.

Citing statistics, as possibilities of a further production cut from OPEC+ nation in an annual summit as early as by early-December, had been heightening up investors’ morale further, the UK crude futures’ prices gained 1.7 per cent to $44.96 a barrel, while the US West Texas Intermediate crude futures’ prices gained 1.2 per cent to wind down the day at $42.42 per barrel.

On the week, both US WTI and Brent crude rocketed more than 5 per cent, marking up the benchmarks’ third consecutive week of gains. Meanwhile, addressing to market participants’ optimism that had been sidestepping the likelihood of a probable delay in global vaccine campaign given the number of doses required to achieve a community-level immunity, a head of oil markets in Rystad Energy, Bjornar Tonhaugen said on the day’s commodity market closing bell, “Despite the fact that in reality it will take time for a global vaccine campaign to be implemented, time during which oil demand will suffer, positive news are breaking daily about the vaccine deliveries.