Oil prices climbed to their highest point since May on Monday, boosted by a successful trial of another COVID-19 vaccine which sparked hopes of a faster economic recovery and oil demand rebound next year. On Monday, AstraZeneca said its coronavirus vaccine was 70% effective in trials and could be up to 90% effective. This follows promising results from Pfizer/BioNTech and Moderna.
Adding support to oil prices, US President Donald Trump allowed the General Services Administration to proceed with the transition to Joe Biden’s administration. This clears the way for Biden to access briefings and funding. Nevertheless, Trump promised that he would continue fighting the election results. Many investors believe Biden’s international trade-friendly policy would propel consumption to rise again in 2021.
The international benchmark Brent crude gained 31 cents (0.7%) to $46.37/barrel by 0914 GMT, after hitting its highest since March 6 at $46.72/barrel. Meanwhile, US WTI crude rose 32 cents (0.7%) to $43.38/barrel. Both benchmark prices climbed about 5% last week.
