TOKYO (Reuters) – Oil rose for a fourth consecutive session on Wednesday after the market ignored an industry report showing U.S. crude oil inventories rose more-than-expected, prolonging a rally led by hope that a COVID-vaccine. 19 will increase the demand for fuel.
Brent crude oil was up 44 cents, or 0.9%, to $ 48.30 a barrel by 0743 GMT, after rising nearly 4% in the previous session. West Texas Intermediate crude rose 33 cents, or 0.7%, to $ 45.24, after rising more than 4% on Tuesday.
Both contracts peaked since early March and have risen by around 9% over the past four days.
“With an orderly presidential transition in sight, vaccine boosters and expectations that OPEC + will extend production cuts next week, oil markets have completely ignored the unexpected 3.8 million barrel surge in oil stocks. US API crude oil, ”said Jeffrey Halley, OANDA’s senior market analyst.
AstraZeneca said on Monday that its COVID-19 vaccine was 70% effective in trials and could be up to 90% effective, providing another weapon in the fight to control the pandemic after positive results. from other major pharmaceutical developers.
However, any viable vaccine is unlikely to be ready for mass use in the coming months, which means that travel blocks and restrictions will be in place in the next year.
This makes it likely that OPEC +, which brings together the Organization of Petroleum Exporting Countries (OPEC) and allies including Russia, will continue production cuts in 2021 after a meeting starting on November 30 following its technical talks. week.
OPEC + producers held back supplies to support prices after pandemic freezes earlier this year caused demand to evaporate.
Production is currently expected to increase by 2 million barrels per day – about 2% of global demand before the pandemic – from January.
In the United States, President Donald Trump’s administration gave President-elect Joe Biden access to resources that allowed him to take power in January after a protracted delay despite Trump’s loss in the November 3 election.
The American Petroleum Institute (API), an industry association, said on Tuesday that U.S. crude oil inventories increased by 3.8 million barrels in the week through November 20 to around 490 million barrels, against expectations of analysts in a Reuters poll for a 127,000-barrel build. [API/S]
Official US government crude oil inventory data will be released later Wednesday. [EIA/S]
Editing by Kim Coghill and Jacqueline Wong