Oil prices rose on Tuesday after the US drug regulator approved the Pfizer Inc/BioNTech SE COVID-19 vaccine. The U.S. Food and Drug Administration (FDA), which licensed the Pfizer/BioNtech two-dose vaccine for emergency use last December, has now given full approval for use in people 16 years of age and older.
Investors are hopeful that higher fuel demand would follow the potential increase in US coronavirus vaccine rates.
Brent crude futures rose 46 cents, or 0.7%, to $69.21 per barrel as of 0648 GMT, while West Texas Intermediate (WTI) crude rose 34 cents per barrel, or 0.5%, to $65.98.
Both indicators rose more than 5% on Monday, helped by the weaker US dollar, after testing the biggest loss in more than nine months last week.
Health officials will try to convince unvaccinated Americans that the vaccine is safe and effective. By the way, more state and local governments, as well as private employers, need to encourage their workers.
Business travel will increase significantly in the fall as many companies and government agencies are likely to meet vaccination requirements.
U.S. crude and gasoline stockpiles are likely to drop last week, which drove prices up, while distillate stocks are expected to rise, according to surveys.
Indian refineries’ crude oil production in July jumped to a three-month high as fuel demand revived and prices supported.
Due to the rapid spread of the contagious Delta variant of the novel coronavirus and low vaccination rates in Asia have generally limited price increases as fuel demand has been suppressed.
The U.S. Department of Energy said on Monday it will sell up to 20 million barrels of crude from the emergency oil reserve to comply with legislation enacted in recent years, and oil deliveries will take place between October 1 and December 15.
