WTI oil futures rose by 2.8 percent to $46.78 per barrel on Thursday, December 10, while Brent consolidated to its nine-month peak of $50.25 after growing 2.8 percent on the day.
In the oil market, optimism continues to boost prices in the anticipation of an economic recovery in 2021 thanks to anti-Covid-19 vaccinations.
News about the approval of a vaccine developed by Pfizer/BioNTech in the United States and Canada and the start of vaccination in these countries in the coming days provide support for oil prices. The recovery in demand for petroleum products in India, which is the third largest importer of oil in the world, is an additional positive factor for the oil market. At the same time, for the sixth week in a row, rates for “black gold” rose almost non-stop, so the market shows signs of “overheating”
The key driver of oil price increases remains the anticipation of the imminent end of the coronavirus pandemic. So, yesterday it became known about the approval of a vaccine by Pfizer/BioNTech companies by the US Food and Drug Administration (FDA). The same vaccine was approved a day earlier in Canada and the vaccination process has already started in the UK. This has encouraged investors to hope for a solution to the issue of the spread of disease and the return to normal functioning of the world economy, which in turn, would lead to a rise in the consumption of oil.
The recovery in oil demand in the third largest oil importing country of India has also increased. The Indian oil company IOC announced yesterday that refining capacity utilization in November hit 100 percent, compared to 88 percent in October. Last month’s gasoline sales surpassed the amount of last year by 4 percent, suggesting a turnaround in the country’s economic activity. At the same time, the head of the IOC stated that the post-pandemic recovery in petroleum products consumption is V-shaped.
Weekly data from the American oilfield services company Baker Hughes will be published today on the number of active drilling rigs in the United States. This indicator rose by 5 units, to 246 units, at the end of the previous week.