Oil prices soared by about 1% on Wednesday, following hopes that OPEC and its allies will delay the planned increase in oil production and Pfizer’s saying that the COVID-19 vaccine was more effective than previously reported.
The market was also supported by a less than expected increase in US crude oil stocks last week.
Brent crude LCOc1 rose 59 cents, or 1.4%, to settle at $44.34 a barrel while West Texas Intermediate (WTI) crude CLc1 gained 39 cents, or 0.9%, to end the session at $41.82.
Both contracts increased by about $ 1 after Pfizer Inc said PFE.N said that the final results of its final stage trial showed that its vaccine was 95% effective.
Also, Moderna Inc MRNA.O said on Monday that preliminary data on his vaccine showed it was almost 95% effective.
Crude oil stocks in the United States rose by 768,000 barrels last week compared to analysts’ expectations for an increase of 1.7 million barrels, according to government data. Distillate stocks, including diesel and heating oil, fell by 5.2 million barrels, far above expectations.
By the way, together, the US and Libya have increased the global supply chain by nearly 2 million barrels of crude oil in recent weeks.