Oil futures pushed higher Thursday, shaking off the previous day’s sharp rise in U.S. crude inventories, as investors remain focused on progress toward a COVID-19 vaccine which may enable a return to economic normality next year.
West Texas Intermediate crude for January delivery
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Oil posted a mixed finish Wednesday, largely shaking off losses that followed data that showed an unexpected 15.2 million barrel rise in U.S. crude inventories last week. Analysts had expected a modest draw.
“There is enough positive vaccine feeling to keep the market in check,” said Stephen Innes, chief global markets strategist at Axi, in a note. “The World Health Organization said jumps in weekly COVID-19 cases in the United States and Canada are particularly problematic as winter approaches. But the U.S. is drawing closer to vaccine approval.”
An all-day regulatory meeting scheduled to take place Thursday is the next step toward the likely authorization of the first COVID-19 vaccine in the U.S. The vaccine, developed by Pfizer Inc.
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Oil’s resilience frustrated some analysts.
“It seems that cheap money, good sentiment on the stock market and, hopes that demand will soon normalize thanks to corona vaccines count for more than the reality,” said Eugen Weinberg, commodity analyst at Commerzbank, in a note.
While the rise in crude inventories was attributed to a surge in imports, increases in gasoline and distillate inventories offered a disturbing picture on fuel demand, he said.
“It seems that cheap money, good sentiment on the stock market and hopes that demand will soon normalize thanks to corona vaccines count for more than the reality,” said
