Oil Futures Settle Sharply Higher, Posts Gains For 7th Straight Week

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Despite continued surge in new coronavirus cases across the world, crude oil futures ended higher on Friday amid hopes energy demand will pick up gradually following another coronavirus vaccine getting the nod from the U.S. drug regulator.

The recent data from Energy Information Administration (EIA) that showed a sharp drop in crude oil stockpiles last week continued to support oil prices.

Oil is also continuing to be supported by the recent decision of the Organization of the Petroleum Exporting Countries and allies to slow the pace of a planned increase in supplies next year.

West Texas Intermediate Crude oil futures for January ended up $0.74 or about 1.5% at $49.10 a barrel.

Brent crude futures moved up nearly 1.5% to settle at $52.26 a barrel.

According to a report released by Baker Hughes, the number of active U.S. rigs drilling for oil rose by 5 to 263 this week, continuing to rise for a fourth straight week.

The total active U.S. rig count, including those drilling for natural gas, increased by 8 to 346.

An U.S. FDA panel recommended emergency approval of Moderna vaccine, paving the way for six million doses to start shipping as soon as this weekend.

Vaccines developed by Pfizer/BioNTech got the nod earlier this month. The U.S., U.K. and Canada have already given the go-ahead and have begun administering the vaccines now.

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

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