Once again, oil quotes grew amid positive news on COVID-19 vaccines.
On Monday morning, February Brent futures have increased by 0.72% to $ 50.33 per barrel, while last Friday, these contracts fell 0.6% to $ 49.97 per barrel.
January WTI futures also rose by 0.62% in the New York Mercantile Exchange (NYMEX) and reached $ 46.86 per barrel, while last Friday, it lost 0.5% and closed at $ 46.57 per barrel.
By the end of last week, Brent blend gained 1.5%, while WTI climbed up by 0.7%. In addition, the value of futures last week reached the highest since March this year.
The reason for such an increase was the positive news on the COVID-19 vaccines. The data appearing in the media continues to fuel investor optimism, especially since it increases hope for a speedy global economic recovery.
In the US, the approval of the US Food and Drug Administration (FDA) in using Pfizer's vaccine allows the authorities to start a campaign for mass vaccination. The first shipments of the drug begins this Monday.
Europe is also trying to bring the free use of the vaccine as close as possible. Last weekend, German Chancellor Angela Merkel said that mass vaccination in Europe will begin a few days after the licensing of the drug. She promised that this will happen no later than December 29 of this year.
Analysts believe that the emergence of the vaccines is guaranteed to have a positive impact on the demand for automotive fuel, and then for aviation fuel. Therefore, experts call the confident optimism inherent in oil prices today quite reasonable.
As for the short-term prospects for oil, OPEC will have a meeting soon and during it, the members will discuss the results of their agreed production cuts. Then, aside from their scheduled meeting on December 16, they will also meet on January 4 to discuss the state of the oil market, after the production restrictions they set for next year.
Meanwhile, another factor that has captured the attention of investors was the explosion of a tanker off the coast of Saudi Arabia on Sunday. Shipping company BW Group said the tanker was sailing under the Singapore flag. Company representatives believe that an external source was the cause of the explosion. Experts fear that this event could provoke a new portion of tension in the region.
