Petroleum prices rose on Wednesday as news about COVID-19 vaccines lifted investor hopes for a recovery in fuel demand and outweighed concerns sparked by figures indicating U.S. oil inventories jumped last week.
Brent crude rose 13 cents, or 0.3%, to $48.98 a barrel. U.S. West Texas Intermediate (WTI) crude climbed six cents to $45.66.
The American Petroleum Institute reported Tuesday U.S. crude oil, gasoline and distillate stocks rose sharply last week, with crude stocks jumping by 1.14 million barrels against analyst forecasts for a draw of 1.42 million barrels.
Britain began mass vaccinations of the Pfizer (NYSE:PFE) on Tuesday. Expectations that others will soon follow helped offset fears about a sharp rise in coronavirus cases globally that has led to new restrictions on movements around the world.
The vaccine news helped offset some fears from a sharp rise in coronavirus cases globally that has led to a string of renewed lockdowns, including strict measures in California, Germany and South Korea.
On the supply front, the Energy Information Agency said U.S. crude oil production was expected to slide next year by 240,000 barrels per day (bpd) to 11.10 million bpd, a smaller decline than its previous forecast for a slide of 290,000 bpd.
