Oil prices rose earlier this Tuesday to their highest level since Saudi Arabia and Russia broke the OPEC + pact in early March, thanks to promising results from a test of the coronavirus vaccine as the European Union He reached a historic agreement on a stimulus package after five days of marathon talks.
At 10:37 am EDT on Tuesday, crude prices WTI was up 3.41 percent to $ 42.20, while Brent crude prices were up 3.28 percent on the day at $ 44.69.
Both benchmarks reached their highest levels since March 6 of this year, when OPEC + pact leaders Saudi Arabia and Russia failed to reach an agreement on how to manage oil supply to the market that it had begun to show. worrying signs that the pandemic would end high demand as lockouts begin in Europe.
On Tuesday, oil prices reacted positively to Monday’s news that a phase 1 trial of a vaccine was being developed by the University of Oxford showed that the vaccine did not pose safety problems, did not cause unexpected symptoms in those who received it, and was very similar to other vaccines of this type.
With the increase in coronavirus cases in many countries, including the United States, and the fear that a second wave of COVID-19 could lead to further localized closings, markets welcomed the news of the vaccine’s development.
Oil prices were also underpinned by a massive economic stimulus package agreement that European Union (EU) leaders finally closed after five days of intense negotiations and disagreements about how much and under what conditions member states would get loans and / or grants for economic recovery.
The next immediate catalyst for oil prices will come from industry estimates of the United States’ commercial oil inventories that the American Petroleum Institute (API) will release later on Tuesday.
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