UPDATE 10-Brent rises above $50/bbl for first time since March on vaccine optimism

* UK vaccinations under way, Pfizer shot nears U.S.
authorization
* Concern over Iraqi oil attack supports prices
* Market brushes off big U.S. crude inventory rise

(Updates with settlement prices)
By Stephanie Kelly
NEW YORK, Dec 10 (Reuters) - Oil prices climbed nearly 3% on
Thursday, with Brent surging above $50 a barrel for the first
time since early March, fueled by hopes of a faster demand
recovery as countries start to roll out COVID-19 vaccines.
The bullish sentiment offset a large increase in U.S. crude
inventories that showed there was still ample supply available.
Britain began vaccinations this week and the United States
could start inoculations as soon as this weekend. Canada on
Wednesday approved its first vaccine and said initial shots
would be delivered starting next week. crude LCOc1 rose $1.39, or 2.8%, to settle at $50.25
a barrel, gaining for a third day. U.S. West Texas Intermediate
(WTI) crude CLc1 rose $1.26, or 2.8%, to settle at $46.78 a
barrel.
Both benchmarks reached their highest levels since March,
with the contracts posting session highs of $51.06 a barrel and
$47.74 a barrel, respectively. However, their relative strength
indexes showed both had moved into overbought territory.
Investors shrugged off Wednesday's weekly report on U.S. oil
inventories that showed a massive 15.2 million-barrel rise in
crude stocks. Analysts had expected a 1.4 million-barrel drop.
EIA/S
"It is not every day that the market ignores weekly builds
of U.S. crude inventories," said Bjornar Tonhaugen, Rystad
Energy's head of oil markets. "Fast-tracking vaccinations is
raising hopes that oil demand will benefit quicker and the North
American markets are major consumers."
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. 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.