Oil rose on expectations that further progress in vaccines against the coronavirus will revive global demand, and amid signs of robust consumption in Asia.
Brent futures advanced 1.4% as Pfizer Inc said a final analysis of clinical-trial data indicated its Covid-19 vaccine was 95% effective. The overall price structure of the market also showed the outlook is brightening, with spreads between the end of this year and next the tightest since March.
Refiners in China, Japan and South Korea snapped up cargoes from Russia, the Middle East and the US, leading to a gain in physical crude prices. Buying interest has been strong after some refiners got less oil than usual in term supply contracts from Opec producers Saudi Arabia and Iraq.
Meanwhile, the Organization of Petroleum Exporting Countries and its allies gave reassurance at a committee meeting that they’re ready to act to keep markets stable later this month. The Opec+ coalition is increasingly minded to delay plans to restore more of the output they’ve halted this year to stave off a glut.
Brent has wobbled since topping $45 a barrel last week.