Global crude oil prices rise as US rolls out COVID-19 vaccine
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GLOBAL oil prices climbed on Monday, and Nigeria’s crude equivalent rose above $50 per barrel following an increase in global crude oil demand after a rollout of coronavirus vaccines was announced by the US.
Brent crude sold at $50.35 per barrel rising by 38 cents while the US West Texas Intermediate, WTI crude was up by 32 cents to sell at $46.89 per barrel.
The US Food and Drug Administration had granted an emergency authorisation on December 11 to the Pfizer-BioNTech vaccine which had started shipping from Pfizer’s Kalamazoo facility for distribution.
Since the US kicked off its vaccination campaign against COVID-19, it has raised hopes that the pandemic restrictions could end soon and lift global oil demand leading to an increase in oil price.
Brent crude and WTI have gained momentum for six consecutive weeks, their longest stretch of gains since June.
The OPEC+ joint ministerial monitoring committee, JMMC, that monitors compliance among members, will meet on December 16, while OPEC+ will meet on January 4 to study the market after their last decision to limit production rises to 500,000 barrels per day starting next year.
S&P Global Platts Analytics, US-based analytics anticipates that global oil demand could rise by more than 6 million barrels per day in 2021, but indicated that fundamentals for the oil market are not as rosy in the near-term.
Two separate fires occurred at Nigeria’s Qua Iboe crude oil export terminal and at an oil pipeline in Iran on Sunday but the incidents have mostly been contained which according to S&P Global Platts Analytics could affect oil prices.
Qua Iboe is Nigeria’s largest export grade and popular crude among global refiners, with India, the US, Canada, Italy, Spain, Indonesia, and the Netherlands being key buyers.