Oil prices rose 4% overnight in response to vaccine optimism, raising hopes for a recovery in global oil demand, while Joe Biden began his transition to the White House.
Last night, Brent Crude gained 3.91% to $47.86 per barrel, while the U.S. WTI rose 4.3% to $44.91 per barrel.
Gains in oil prices also extended into the morning session of Asia markets as Brent Crude extended its gain by 1.13% to $48.40 per barrel and WTI advanced 1.11% to $45.41 per barrel.
Surges in oil prices came after drug makers revealed an effective coronavirus vaccine, aiming to distribute, if approved, in December or early January. The optimism was led by Pfizer and Moderna’s vaccine, which reported 95% effective on coronavirus. AstraZeneca made it to 70% effective and stated that it could reach 90%. Johnson & Johnson and Novavax are in the process of trials.