Oil prices rise on declining US crude stocks and hopes for a COVID-19 vaccine

Shafaq News / 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, Reuters agency reported.

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.

Both Brent and U.S. oil prices are up more than 10% this week since initial trials data showed the experimental COVID-19 vaccine being developed by Pfizer Inc and Germany’s BioNTech was 90% effective.

Although oil prices are supported by the positive news on vaccine, overall fuel demand outlook remains clouded amid re-imposed coronavirus restrictions in Europe and United States.