Oil is poised for a third weekly gain in New York as positive Covid-19 vaccine developments outweighed concerns about more restrictions stemming from a global surge in infections. Futures are back near $42 a barrel and set for the longest run of weekly gains since August following news of another vaccine breakthrough on Monday. Optimism around a vaccine offset a grim picture emerging across the U.S. with Americans urged not to travel for Thanksgiving, California ordering a one-month curfew and New York closing public schools.
Still, the oil market is facing an uncertain demand recovery, with a resurgent virus in the U.S. and Europe prompting tighter restrictions and keeping consumption in check, even as parts of Asia rebound strongly. The flaring outbreak will be a key issue for OPEC+ when it meets at the end of the month to decide on whether to delay a planned easing of cuts early next year.