On Friday, both US West Texas Intermediate (WTI) and Brent crude futures’ prices surged more than 1.5 per cent, winding down a seventh consecutive week of percentage gains as market participants were heavily betting over an earlier-than-anticipated economic recovery following a rollout of pandemic vaccine in a majority of G7 economies, while a sharply softening US Dollar that had shrugged off 1.16 per cent this week, rekindled appetites for riskier assets.
Aside from that, a surprise decline in US crude inventory last week alongside progresses towards rubberstamping a $900 billion in US pandemic relief bill, added to further bullish wings. In point of fact, the week’s gain in crude oil futures’ prices comes over the heels of a swathe of upbeat economic data across the globe, while Government data in China had revealed earlier this week that the world’s second-largest economy’s manufacturing output soared by the steepest pace in November in more than twenty months, while US factory output also rose more than anticipated.
Besides, Pfizer Inc.’s vaccine candidate which it had developed in collaboration with Germany’s BioNTech, had applied for an approval in Japan on Friday, while Moderna’s vaccine candidate had also received an approval for emergency use in the United States, stoking hopes of an economic rebound.
Crude oil rises for seventh straight week in a row on vaccine, stimulus hopes
Citing statistics, in the day’s commodity market round off, UK crude futures climbed 1.5 per cent to settle down at $52.26 per barrel after hitting a session high of $52.48 a barrel, its highest level since March this year, while the US WTI crude futures gained 1.5 per cent to $49.10 per barrel after hitting a session high of $49.28 a barrel, remarking its highest since February.
For the week, UK crude rose 4.70 per cent, while the US WTI crude futures jumped 5.30 per cent. Meanwhile, addressing to a sharply softening US Dollar alongside progresses over a $900 billion pandemic stimulus bill in the US Senate, a partner at Again Capital LLC in New York, John Kilduff said, “The dollar’s weekly decline is a significant move down and is pushing the oil complex higher”.