Oil pushed past $47 a barrel, extending a remarkable vaccine-driven rally that’s taken many in the market by surprise. Futures in New York rose 0.7% after jumping 2.8% Thursday. The first Covid-19 vaccine expected to be deployed in the U.S. won the backing of a panel of government advisers, helping clear the way for emergency authorization by the Food and Drug Administration. The dollar has also resumed its downward trend, making commodities priced in the currency more appealing.

Brent closes above $50 for first time since early March

The American crude benchmark has risen more than 30% since the end of October on the back of a series of vaccine breakthroughs. The market took OPEC+’s decision to restore a small amount of output in January in its stride and the oil futures curve is signaling investors are comfortable with the supply-demand balance and expect a recovery in consumption next year.

PRICES
  • WTI for January delivery rose 0.7% $47.09 a barrel on the New York Mercantile Exchange at 7:49 a.m. in London
    • The contract is up 1.8% this week, poised for a sixth weekly advance, the longest winning streak since June
  • Brent for February settlement advanced 0.6% to $50.56 after closing 2.8% higher on the ICE Futures Europe exchange on Thursday
  • Crude futures climbed 2% to 288.3 yuan a barrel on the Shanghai International Energy Exchange and have dropped 2.6% this week