Oil hit its highest since March on Tuesday, rising towards 47 a barrel, as a third promising coronavirus vaccine spurred hopes of a quicker recovery in economic growth and oil demand next year.
AstraZeneca said on Monday its COVID19 shot was 70 effective in trials and could be up to 90 effective, giving the fight against the pandemic a third vaccine. This follows positive results from PfizerBioNTech and Moderna.
Brent crude rose 31 cents, or 0.7, to 46.37 a barrel by 0914 GMT and hit a session high of 46.72, its highest since March 6.
U.S. West Texas Intermediate crude gained 32 cents, or 0.7, to 43.38.
The fight against the coronavirus is intensifying and is proving to be increasingly successful, said Tamas Varga of broker PVM. Next years oil demand estimates are bound to be amended upwards.
This is Brents highest since a Saudi ArabiaRussia price war just as demand was starting to crater due to the pandemic in March sent prices crashing. Both benchmarks settled up about 2 on Monday after gaining about 5 last week.
Also supporting oil and wider financial markets, U.S. President Donald Trump on Monday allowed officials to proceed with a transition to Joe Bidens administration.
With a Biden presidency perceived as more international tradefriendly, markets have assumed that consumption in 2021 will rise again, said Jeffrey Halley of brokerage OANDA.
Expectations that U.S. crude inventories edged lower last week also added support. The first of this weeks U.S….