Oil prices jump, boosted by vaccine hopes and drop in U.S. crude inventories

Tom Little/Agence France-Presse/Getty Images

Oil futures climbed Wednesday, adding to the week’s gains on optimism that the prospect of COVID-19 vaccine will support an economic recovery, along with industry data that showed a large drop in U.S. crude inventories.

Prices have continued to push higher on this week’s vaccine news, and the report from the American Petroleum Institute, a trade group, showing a bigger-than-expected decline in weekly U.S. crude supplies contributed to the day’s gain for oil prices, said ED&F Man Capital analyst Edward Meir.

“But juxtaposed against this, are growing lockdowns in Europe and more restrictions being imposed in various U.S. states that are bound to hurt energy demand over the short-term,” he said in a Wednesday note. “We think that oil could come under renewed pressure once this current rally plays out, as the vaccine breakthrough is not imminent in terms of widespread distribution just yet, while demand

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Oil rises on declining U.S. crude stocks, hopes for COVID-19 vaccine

By Aaron Sheldrick and Koustav Samanta

a clock tower lit up at night: FILE PHOTO: The sun sets behind a pump-jack outside Saint-Fiacre

© Reuters/Christian Hartmann
FILE PHOTO: The sun sets behind a pump-jack outside Saint-Fiacre

TOKYO/SINGAPORE (Reuters) – Oil prices climbed over 1% on Wednesday, after an industry report showed U.S. crude inventories have fallen more than expected, while hopes of an effective COVID-19 vaccine continued to bolster sentiment.


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Brent crude futures were up 48 cents, or 1.1% to $44.09 a barrel at 0445 GMT, while U.S. West Texas Intermediate (WTI) crude futures also rose 48 cents, or 1.2%, to $41.84 a barrel. Both benchmarks gained nearly 3% on Tuesday.

Crude stockpiles fell by 5.1 million barrels last week to about 482 million barrels, industry group data showed on Tuesday, compared with analysts’ expectations in a Reuters poll for a reduction of 913,000 barrels. [API/S]

“Defying analysts’ expectations again, the American Petroleum Institute (API) reported on Tuesday a significant ‘draw’ in crude oil inventories,”

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