Oil Rises With The News Of Coronavirus Vaccine

Oil Rises With The News Of Coronavirus Vaccine Oil rises with the news of the coronavirus vaccine. Brent oil surpassed $ 50 for the first time since March. As the positive news from the new type of coronavirus vaccine came, the prices were positively affected by the thought that the demand for oil will increase. Brent oil rose above $ 50 for the first time since March. Although everything has not yet returned to its original state on the oil front, positive signals continue to emerge. The amount is decreasing, from the fuels previously accumulated in small barges to the fuels in giant tankers. At this point, it is stated that large financial flows also affect the price increase, rather than the reorganization of supply and demand. In addition, it was said that crude oil has become a hot coronavirus vaccine trade in these days, when travel is expected to recover rapidly in 2021. So much so, Amrita Sen, co-founder of London-based Energy Aspects Ltd., said, "Oil is the cheapest of all reflation assets. As vaccines spread slowly, we expect investors to turn to the oil sector and prices to continue to strengthen.” According to reports, the recovery in some parts of the world is almost complete. Last week, India's largest refinery facilities announced that it is operating at full capacity and expects a V-shaped recovery in fuel use. In China and Japan, the world's second and fourth largest oil consumers, gasoline consumption has come closer to its pre-coronavirus outbreak levels. On the other hand, as the demand for oil increases, the Organization of Petroleum Exporting Countries and its allies are not stretching the limits of production. OPEC canceled the 1.9 million barrels per day supply increase in January and instead announced that it would not add more than 500,000 barrels a day to the market each month in the new year.       This article is contributed by Bloomberg News.