Oil soars 8.5% on promising Covid-19 vaccine results
Oil surged more than 8% on Monday, putting it on track for its biggest daily gain in more than six months after Pfizer announced promising results for its COVID-19 vaccine, boosting risk assets around the globe.
Brent crude was up $3.11, or 7.9%, at $42.56 a barrel, while U.S. West Texas Intermediate crude settled up $3.15, or 8.5%, to $40.29.
Both contracts rose more than $4 earlier in the session and traded more than 120% of last session’s volumes.
“The oil complex is joining in the bullish euphoria of today’s optimistic vaccine headlines as well as the weekend election results by trailing the equities higher,” said Jim Ritterbusch of Ritterbusch and Associates in Houston.
Pfizer said its experimental vaccine was more than 90% effective in preventing COVID-19, based on initial data from a large study, a victory in the battle against a pandemic that has forced lockdowns around the world and led to a drop-off in fuel demand.
Wall Street, which oil prices often follow, reached all-time highs after the announcement.
Reference: CNBC
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