Crude Oil Gains on Stimulus Package, Europe  Mass Covid-19 Vaccination

Prices of crude oil rose on Monday following the signing of coronavirus aid package by President Donald Trump.

Brent crude oil, Nigerian type of crude oil, gained 43 cents or 0.84 percent to $51.72 per barrel before pulling back to $51.38 per barrel as of 4:24 pm Nigerian time.

The US West Texas Intermediate oil rose by 45 cents or 0.93 percent to $48.68 per barrel during the London trading session.

Jeffrey Halley, analyst at broker OANDA, said “The signing of the U.S. stimulus bill, with the possibility of an increased size, should put a floor under oil prices in a shortened week.”

Oil prices recovered from historic lows following approval of Pfizer and BioNTech COVID-19 vaccine and Trump’s eventual agreement to sign $2.3 trillion stimulus package ahead of his departure in January 2021.

The renewed confidence in oil was also due to the mass COVID-19 vaccination announced on Sunday in Europe area.

Still, emergence of a new type of COVID-19 in the United Kingdom and other nations could derail ongoing sentiment as countries start shutting down their doors.

Demand could drop, especially with OPEC and allies planning to increase supplies by 500,000 barrels per day in January. Therfore, uncertainty remained high despite series of positive news.