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Gulf Today Report

Oil gained on Tuesday to $47 a barrel as a third company announced its coronavirus vaccine, its biggest gain since March.

Brent crude rose 31 cents, or 0.7%, to $46.37 a barrel by 0914 GMT and hit a session high of $46.72, its highest since March 6. US West Texas Intermediate crude gained 32 cents, or 0.7%, to $43.38.

On Monday, AstraZeneca in collaboration with the University of Oxford announced a 70% effective COVID-19 shot in trials and it could go up to 90%. 

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 According to Tamas Varga of PVM broker, markets remain optimistic for an increase in demand in oil next year as the fight against coronavirus is looking successful.

Aside from the coronavirus vaccine, markets are looking forward to Biden’s administration, which is perceived to be more international trade-friendly, thereby, increasing consumption, said Jeffrey Halley of brokerage OANDA.

OPEC+ is set to hold a meeting on Nov.30- Dec.1, which could lead to a rollover in current cuts.