Oil jumps to 9-month high, Brent settles above $50 for first time since March
Oil surged above $50 a barrel on Thursday for the first time since early March as hopes of a faster demand recovery after the release of COVID-19 vaccines offset a huge rise in U.S. crude inventories that showed there was still ample supply available.
Britain began vaccinations this week and they could start as soon as this weekend in the United States. Canada on Wednesday approved its first vaccine and said initial shots would be delivered starting next week.
Brent crude gained $1.39, or 2.84%, to settle at $50.25 per barrel, rising for a third day. U.S. West Texas Intermediate (WTI) crude settled $1.26, or 2.8%, higher at $46.78 per barrel.
Oil gained even after the latest weekly report on U.S. oil inventories showed a massive, 15.2 million-barrel rise in crude stocks. Analysts had expected a 1.4 million-barrel drop.
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.
“Traders are also nervous about the oil supply,” said Naeem Aslam of Avatrade, referring to the Iraq attack.
Reference: CNBC
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