Oil rises, Brent crude at highest level since March

Oil prices extended gains on Tuesday, with Brent crude rising to the highest level since March amid hopes of demand recovery following reports of positive trials for COVID-19 vaccine, while US President-elect Joe Biden received the go-ahead to begin the transition.

The US General Services Administration has informed the Democrat President-elect that the transfer of power may formally begin, before he takes office on Jan. 20, 2021.

Meanwhile, reports of successful vaccine trials for COVID-19 have shored up demand recovery hopes. So far, drugmakers Pfizer/BioNTech, Moderna and AstraZeneca have reported positive trial results.

In terms of trading, Brent crude was up 1.1% at $46.57 – the highest since March – at 8.50 am Makkah time.

WTI crude also rose 1.3% to $43.61 a barrel.

US oil inventories estimates are due to be released by the American Petroleum Institute later today.