Oil up over stimulus expectations and positive vaccine results

Oil saw modest gains on Tuesday morning in Asia over positive results from three potential Covid-19 vaccine candidates.

Brent oil futures rose 0.28% to $43.40 by 1:14 AM ET (6:14 AM GMT) and WTI futures also rose 0.15% to $40.98.

British drugmaker AstraZeneca (LON:AZN) and Oxford University said on Monday that its Covid-19 vaccine induced an immune response in all study participants that received two doses. The other two candidates are being developed by Cansino Biologics (HK:6185) alongside China’s military research unit, and German biotech BioNTech (NASDAQ:BNTX) and US drugmaker Pfizer (NYSE:NYSE:PFE).

Potential stimulus measures from both the US and Europe also boosted investor sentiment, with hopes that the measures will boost economic recovery and demand for the black liquid.

Some cinemas reopened on Monday in China, one of the world’s biggest oil importer, in a positive sign of economic recovery in the world’s second largest economy.

“With major economies opening … demand should pick up for oil, and more so if a vaccine becomes available soon,” Fawad Razaqzada, market analyst at ThinkMarkets, told Reuters. But Covid-19 continues its global rampage, with over 14.5 million cases as of July 21, according to Johns Hopkins University data.

Meanwhile, Chevron Corp (NYSE:CVX) said on Monday that it would buy oil and gas producer Noble Energy Inc (NASDAQ:NBL), in the sector’s fist big deal since Covid-19 crushed demand. Chevron will pay about $5 billion in stock for the acquisition

Meanwhile, investors are looking to the American Petroleum Institute (API)’s estimate of crude oil supply, due later in the day.

By Investing.com: https://www.investing.com/news/commodities-news/oil-up-over-stimulus-expectations-and-positive-vaccine-results-2234936