Oil rises as full U.S. clearance for COVID-19 vaccine stokes fuel demand hopes
24/08/2021 03:03
* India's July refinery processing highest in three months
* U.S. to sell up to 20 mln barrels of SPR oil
* U.S. crude inventories expected to drop for 3rd week -
poll
* Coming up: API oil inventory data at 2030 GMT
By Jessica Jaganathan
SINGAPORE, Aug 24 (Reuters) - Oil prices rose on Tuesday
after the U.S. drug regulator granted full approval to the
Pfizer Inc/BioNTech SE COVID-19 vaccine, stoking investor hopes
that higher fuel demand will follow a potential step up in U.S.
coronavirus vaccination rates.
Brent crude oil LCOc1 futures gained 66 cents, or 0.9%, to
$69.41 a barrel by 0201 GMT, while U.S. West Texas Intermediate
(WTI) crude CLc1 futures increased by 60 cents, or 0.9%, to
$66.24 a barrel.
Both benchmarks jumped more than 5% on Monday, helped by a
weaker U.S. dollar, after marking their biggest week of losses
in more than nine months last week.
The U.S. Food and Drug AdministrationFDA, which last
December authorised the Pfizer/BioNtech two-dose vaccine for
emergency use, has now issued full approval for use in people
age 16 and older. urn:newsml:reuters.com:*:nL4N2PU36O
Health officials hope the action will convince unvaccinated
Americans that the shot is safe and effective, and expect it
could also prompt more state and local governments, as well as
private employers, to impose vaccine mandates.
"Vaccine hesitancy across some minorities might end now that
the FDA has given the all-clear signal," said Edward Moya,
senior analyst at OANDA.
"With many corporations and government agencies likely to
enforce vaccine mandates, return to office travel should
dramatically pick up in the fall."
Also boosting prices, U.S. crude and gasoline inventories
likely declined last week, while distillate stockpiles are
expected to have increased, a preliminary Reuters poll ahead of
industry data showed on Monday. urn:newsml:reuters.com:*:nL4N2PU36G
Indian refiners' crude throughput in July bounced to its
highest in three months as fuel demand rebounded, which
supported prices. urn:newsml:reuters.com:*:nL4N2PU3TI
Price gains were capped after the U.S. Department of Energy
said Monday it would sell up to 20 million barrels of crude from
the emergency oil reserve to comply with legislation passed in
recent years, with deliveries of the oil to take place between
Oct. 1 and Dec. 15. urn:newsml:reuters.com:*:nL1N2PU1CV
(Reporting by Jessica Jaganathan; Editing by Kenneth Maxwell)
((Jessica.Jaganathan@thomsonreuters.com; +65 6870 3822; Reuters
Messaging: jessica.jaganathan.thomsonreuters.com@reuters.net;
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