OIL UP DUE TO VACCINE RELEASE, FEARS OVER IRAQ OILFIELD ATTACKS

Oil prices edged up on Thursday, buoyed by a COVID-19 vaccine rollout in Britain and the imminent approval of a vaccine in the US that could spur a rebound in fuel demand, while a large build in US crude stocks last week held gains in check, Sonali Paul and Florence Tan reported for Reuters.

US West Texas Intermediate (WTI) crude futures rose 14 cents, or 0.3%, to $45.66 a barrel at 0706 GMT, while Brent crude futures climbed 12 cents, or 0.3%, to $48.98 a barrel. Prices were little changed overnight. “The market is looking past what looks like a difficult winter and peering into the optimistic lens of 2021,” Howie Lee, an economist at Singapore’s OCBC bank said.

Vaccinations could start as soon as this weekend in the US, with a panel of advisers to meet on Thursday to discuss whether to recommend to the Food and Drug Administration (FDA) emergency use authorization (EUA) of the Pfizer/BioNTech vaccine. “A COVID-19 vaccine is a major turning point. Amongst its many benefits, will be that it could draw a line under the decline in oil market demand, which has suffered from government-imposed movement restrictions,” ANZ analysts said in a note.

Oil prices were also supported by some nervousness after two wells at a small oilfield in northern Iraq were set ablaze in what the government called a “terrorist attack,” though production was not affected. “While the wells were small, it has raised concerns of further disruptions,” ANZ analysts said.