Oil prices continued to maintain their momentum after hitting high levels since March, supported by market confidence in the recovery in global demand following positive developments on the Covid-19 vaccine.
The US WTI traded stronger at its latest high since March at $ 45.40 a barrel while BRent crude also strengthened at $ 48.33 a barrel at the opening of the Asian session.
Before the commodity trading movement came to a halt after the American Petroleum Institute (API) reported an increase in US crude oil supply of 3.8 million barrels last week.
However, due to positive market sentiment over frustration with the increase in US inventory, crude oil prices continued to rise during the Asian session.
AstraZeneca said Monday that its vaccine has a 70% efficacy in trials and has the potential to increase by 90%, providing another weapon to help fight the coronavirus pandemic after getting positive results from other major vaccine makers.
However, these vaccines may not be available for mass use in the next few months, meaning closures and travel restrictions will still be in place until next year.
This reinforces the expectation that OPEC and its allies including Russia, OPEC + will continue their commitment to reduce oil production until early next year during the November 30 and December 1 meetings.
