Although US high oil stocks raised the concerns in last week, oil prices soared on Wednesday as news about COVID-19 vaccines raised investors’ hopes for an improvement in fuel demand.
Brent crude rose 27 cents, or 0.6%, to $49.11 a barrel by 1218 GMT. West Texas Intermediate (WTI) crude CLc1> climbed 22 cents, up 0.5%, to $45.82.
Statements said U.S. crude oil, gasoline and distillate stocks rose sharply last week, and crude oil inventories increased by 1.14 million barrels according to analyst estimates, contrary to the draw of 1.42 million barrels. Official oil data will be released later on Wednesday.
Although vaccination practices have already begun in some countries, it will take time for their effects to reflect on the field. However, vaccine news and practices have helped dispel fears about a sharp rise that has led to new restrictions.
Meanwhile, the worsening COVID-19 report, especially in Europe, continues to put pressure on prices.
Hedge fund managers were key buyers of oil futures and options for the fourth week in a row last week; This is a sign of increasing confidence that coronavirus vaccines will improve oil consumption next year.
On the supply front, U.S. crude oil production is said to decline 240,000 barrels per day to 11.10 million barrels next year, less than the previous estimates of a decline of 290,000 barrels to 11.10 million barrels.