UPDATE 8-Oil prices up $1/bbl on virus vaccine hopes, EU stimulus deal

* EU summit results in 750 bln euro stimulus deal
* Early vaccine data raises hope of economic boost
* U.S. crude, products inventories seen down last week -poll
* Coming Up: API inventory data at 4:30 p.m. ET/2030 GMT

(New throughout, updates prices, market activity and comments
to settlement)
By Laila Kearney
NEW YORK, July 21 (Reuters) - Oil prices rose about $1 a
barrel on Tuesday, hitting the highest in more than four months
with a boost from a European Union stimulus deal and hopeful
news about coronavirus vaccine trials.
Also supporting the market, U.S. crude oil and refined
products inventories likely fell last week, a Reuters poll
showed. EIA/S
Brent crude LCOc1 futures settled at $44.32 barrel, rising
$1.04, or 2.4%. West Texas Intermediate (WTI) settled at $41.96
a barrel, gaining $1.15 cents, or 2.82%.
Prices were buoyed by an agreement among European Union
leaders on a 750 billion euro ($859 billion) fund to prop up
coronavirus-hit economies.
The EU deal allows the European Commission to raise billions
of euros on capital markets on behalf of all 27 states, an
unprecedented act of solidarity in almost seven decades of
European integration. World shares .MIWD00000PUS and the euro also hit their
highest in several months. The dollar, in which most oil
contracts are priced, fell to its lowest since March against a
basket of currencies .DXY . MKTS/GLOB
Oil prices were supported by promising coronavirus vaccine
data released on Monday, though a vaccine remained months away
at best. Several companies are testing new drugs for immunity to
COVID-19.
Oil prices also drew support from the prospect that the
United States could also soon agree on a new stimulus package,
with less than two weeks until the expiry of extended
unemployment aid for millions of Americans. "Apparent progress on the U.S. stimulus deal, the EU
recovery agreement and progress toward a successful vaccine have
all merged this week to kick up demand for risky assets," said
Jim Ritterbusch of Ritterbusch and Associates.
Countries from the United States to India are reporting
record numbers of coronavirus infections and others, such as
Spain and Australia, are battling new outbreaks. American Petroleum Institute (API) data on U.S. crude
stockpiles is due at 4:30 p.m. EDT (2030 GMT), while Energy
Information Administration (EIA) data is due on Wednesday
morning. API/S EIA/S
Ten analysts polled by Reuters estimated, on average, that
crude stocks decreased by 2.1 million barrels in the week to
July 17.