Oil prices rose sharply on Wednesday as positive news on a Covid-19 vaccine continued to boost sentiment and industry data showed U.S. crude inventories dropped more than expected last week.

U.S. West Texas Intermediate (WTI) crude futures jumped 3.3 percent to $42.72 per barrel after climbing nearly 3 percent in the previous session. Benchmark Brent crude futures were up more than 3 percent at $44.97 per barrel.

As several countries report further outbreaks of Covid-19, a vaccine developed by U.S.-based Pfizer and Germany’s BioNTech has shown 90 percent efficacy in trials.

Pfizer’s vaccine is a very promising on and we expect more and more, WHO director-general Tedros Adhanom Ghebreyesus said on Tuesday and hoped there will be a coronavirus vaccine by the end of 2020.

However, experts cautioned that there are many supply chain hurdles with manufacturing, warehousing, distributing, and administering the Covid-19 vaccines.

The American Petroleum Institute (API) reported on Tuesday a major draw in crude oil inventories of 5.1 million barrels last week, compared with analysts’ expectations for a reduction of 913,000 barrels.

The EIA data due out later in the day is expected to show crude inventories down by 3 million barrels last week.

Goldman Sachs said a surge in Covid-19 cases in Europe and the U.S. will hurt oil demand by as much as 3.1 million barrels per day, but it won’t stop prices from rebounding over the next 18 months as vaccines emerge.

The material has been provided by InstaForex Company – www.instaforex.com

Leave your vote

🚀If you want to get a Forex Robot Coded as per your trading strategy but are unable to do so because of the high price for the Robot then you can take advantage of the CROWD FUNDING campaigns feature. ✔ These are some crowd funding campaigns for Forex Robots, which when completed can provide the very same Forex Robot to the participants at an average price of $5-$10 per participant. ✔ You either participate in one of the already listed campaigns or send us your Forex strategy : Submit Crowd Funding Campaign , for which you would like the Forex Robot to be coded. A Crowd Funding Campaign would then be started for the same . ✔ All you have to do later on is to share the campaign online with your friends to encourage more people to participate in the campaign.

As a result, each participant can get that Forex robot for just a campaign contribution of $5 (which is the minimum). Participants can back the campaign by anything above or equal to $5 to reach the funding goal to close the campaign.