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Oil rises on vaccine rollout, concern on Iraq oilfield attack

Published 12/10/2020, 10:34 AM
Updated 12/10/2020, 10:40 AM
© Reuters.
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By Sonali Paul
MELBOURNE, Dec 10 (Reuters) - Oil prices rose in early trade
on Thursday, buoyed by a COVID-19 vaccine rollout in Britain and
the imminent approval of a vaccine in the United States, which
could spur a rebound in fuel demand, despite a large build in
U.S. crude stocks last week.
U.S. West Texas Intermediate (WTI) crude CLc1 futures rose
23 cents, or 0.5%, to $45.75 a barrel at 0200 GMT, while Brent
crude LCOc1 futures climbed 21 cents, or 0.4%, to $49.07 a
barrel. Prices were little changed overnight.
"Optimism over the vaccine prevails and continues to limit
any serious downside action," Axi chief market strategist
Stephen Innes said in a note.
Vaccinations could start as soon as this weekend in the
United States, with a panel of advisers to meet on Thursday to
discuss whether to recommend to the Food and Drug Administration
emergency use authorization of the Pfizer/BioNTech vaccine.
Canada approved its first COVID-19 vaccine on Wednesday and
said inoculations would start next week. Oil prices were also supported by some nervousness after two
wells at a small oilfield in northern Iraq were set ablaze in
what the government called a "terrorist attack", though
production was not affected. "While the wells were small, it has raised concerns of
further disruptions," ANZ Research said in a note.
Analysts were surprised that the market had shrugged off an
unexpectedly large build in U.S. crude stocks in government data
released on Wednesday, largely due to a plunge in U.S. crude
exports to their lowest since 2018. Crude inventories rose by 15.2 million barrels in the week
to Dec. 4, the Energy Information Administration said, compared
with analysts' expectations in a Reuters poll for a 1.4 million
-barrel drop.


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