Oil makes gains as FDA green lights vaccine
Oil prices climbed up on Tuesday following the US approval of a COVID-19 vaccine developed by Pfizer Inc. and BioNTech SE. The vaccine’s approval fanned investor hopes that increased fuel demand would follow a potential rise in the US vaccination rates.
Brent crude oil futures rose 0.7%, or 46 cents, to $69.21 by 0648 GMT, while US West Texas Intermediate (WTI) climbed up 0.5%, or 34 cents, to $65.98.
Both benchmarks soared more than 5% on Monday, boosted by a weaker US dollar, after marking their biggest week of losses in more than nine months during the previous week.
The US Food and Drug Administration (FDA), which authorized the emergency use of the Pfizer/BioNTech two-dose vaccine last December, has now issued full approval for use in people age 16 and older.
The previous week’s decline in the US crude and gasoline inventories has also helped boost prices.
However, the rapid spread of the more virulent Delta variant of the coronavirus and low vaccination rates in Asia has capped the black liquid’s gains.