Oil prices gains as vaccine rollout boost global demand outlooks

3 March 2021 (Last Updated March 3rd, 2021 12:13)

Global crude oil prices have risen as the rollout of the Covid-19 vaccine have improved global demand expectations.

Oil prices gains as vaccine rollout boost global demand outlooks
The oil price gains are being capped due to uncertainty over the OPEC+ decision. Credit: Stephen Marrable / Pixabay.

Global crude oil prices have risen as the rollout of the Covid-19 vaccine have improved global demand expectations.

The US West Texas Intermediate (WTI) crude futures increased $0.18, or 0.3%, to reach $59.93 a barrel while Brent crude futures rose to $62.99 a barrel, an increase of $0.29, or 0.46%, reported Reuters.

Analysts said that demand recovery hopes due to the coronavirus vaccine rollouts supported global oil prices.

US President Joe Biden announced that the Covid-19 vaccine will be made available for every American adult by the end of May.

The announcement comes after pharmaceutical firm Merck & Co agreed to make Johnson & Johnson’s Covid-19 vaccine.

Meanwhile, investors are worried over the meeting by the Organization of the Petroleum Exporting Countries (OPEC) and allies, together called OPEC+, which could result in increased oil supply to the market.

In order to support oil prices, OPEC’s leader Saudi Arabia has made a voluntary production cut of one million barrels of oil equivalent per day (MMbdp).

Axi global market strategist Stephen Innes was cited by the news agency as saying: “The recent selloff may help reinforce Saudi’s cautious stance and delay any production increase.

“It’s probably something that could sway the OPEC+ increase more back toward the 500,000bpd as opposed to the 1.5MMbpd.”