Oil jumps to 8-month peak ahead of US crude inventories data

Oil prices continued to rise as the US market opened on Wednesday, extending gains for the sixth straight day, and jumped to an 8-month peak, amid optimism about Covid-19 vaccines, which offset the impact of a rise in the US crude inventories, according to preliminary data, and ahead of the US Energy Information Administration's weekly report.

US crude rose 1.9% to the highest level since March 6 at $45.67, after opening at $44.80, and hit a session low of $44.76, and Brent crude rose 1.8% to the highest level since March 6 at $48.68 a barrel, after opening at $47.80, with a low of $47.74.

US crude gained 4.6% yesterday, and Brent crude futures rose about 4.5%, posting their fifth daily gain in a row, in the longest daily gains streak since September thanks to news about Covid-19 vaccination. 

According to the latest medical research, a Covid-19 vaccine could be available before the end of this year, which will finally help in putting an end to the pandemic that has severely impacted the global demand for fuel.

The British pharmaceutical giant AstraZeneca said on Monday that its vaccine, developed in collaboration with the University of Oxford, was about 70% effective in preventing Covid-19 and can reach up to 90%, according to an interim analysis of clinical trials third phase.

The Russian authorities announced on Tuesday that the Sputnik-V vaccine is 95% effective in preventing Covid-19, according to the results from the final phase of clinical trials.

The American Petroleum Institute (API) revealed yesterday in preliminary data that the US crude inventories rose by about 3.8 million barrels during the week ending November 20, missing forecasts of 0.2 million barrels.

While the US Energy Information Administration's official data will be released later today, amid forecasts for inventories to rise by 0.1 million barrels.