The rise of oil with positive expectations … What is the relationship of the Pfizer vaccine?

Swiss bank UBS has expressed positive expectations for oil prices despite recent price declines due to the state of the economy and the Corona pandemic as the bank expects Brent crude prices to recover at $ 75 a barrel, and also said that oil stocks will continue to fall.

In turn, Bank of America has raised expectations for the level of Brent crude for the current year and years ahead, considering that an increase in the supply gap in 2022 could push the price of oil to 100%. $ per barrel.

Oil prices rose today, Tuesday, after the United States Food and Drug Administration gave full approval for the use of the Pfizer / Piontech vaccine against Covid-19, boosting investors’ hopes higher demand for fuel due to a possible increase in vaccination rates. in the USA.

Brent crude futures were up $ 1.60, or 2.3%, to $ 70.37 a barrel at 2:00 p.m. GMT.

U.S. West Texas Intermediate crude contracts rose $ 1.49, or 2.2%, to $ 67.11 a barrel.

Both benchmarks jumped more than 5% yesterday, supported by the weaker dollar, after suffering its biggest weekly loss in more than 9 months last week.

The U.S. Food and Drug Administration, which granted emergency use approval for the vaccine in December, has given full approval to the two-dose vaccine for people 16 years of age or older.

Also, prices were bolstered by the expectation of a preliminary Reuters poll ahead of the release of industry data, the drop in crude and gasoline inventories in the United States last week, while inventories of distillates should have increased.

Crude consumption by Indian refiners rebounded in July to a three-month high as demand for fuel recovered, supporting prices.