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Britain began vaccinations this week and they could start as
soon as this weekend in the United States. Canada on Wednesday
approved its first vaccine and said initial shots would be
delivered starting next week.
Brent crude was up 51 cents, or 1%, at $49.37 a barrel at 1039
GMT, rising for a third day. U.S. West Texas Intermediate (WTI)
crude rose 45 cents, or 1%, to $45.97.
Oil gained even after the latest weekly report on U.S. oil
inventories showed a massive, 15.2 million-barrel rise in crude
stocks. Analysts had expected a 1.4 million-barrel drop. [EIA/S]
"The latest set of data has exceeded any bearish expectations,"
said Tamas Varga of oil broker PVM. "The stubbornness of oil
bulls and their confidence in the positive economic impact of
the vaccine roll-out are truly remarkable."
Concern over an attack on an Iraqi oilfield also lent support.
Two wells at a small field were set ablaze by explosives on
Wednesday, but overall production from the field was not
affected.
"Traders are also nervous about the oil supply," said Naeem
Aslam of Avatrade, referring to the Iraq attack.
Oil has recovered from historic lows reached in April when the
pandemic hammered demand, helped by a record supply-cut deal by
the Organization of the Petroleum Exporting Countries and
allies, known as OPEC+.
OPEC+ will further ease its supply restrictions in January by
adding an extra 500,000 barrels per day although the easing is
more gradual than previously agreed, to provide additional
support to the market.
(Additional reporting by Sonali Paul and Florence Tan; Editing
by Mark Potter and David Clarke)
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