Oil price rally builds steam as coronavirus vaccine rollouts begin

TOKYO, Dec 11 (Reuters) - Oil rose around 1% on Friday,
extending a sharp rally overnight that saw Brent rise above $50
for the first time since March, as coronavirus vaccination
rollouts kept hopes alive that demand for crude would build up
next year.
Brent LCOc1 was up 45 cents or 0.9% at $50.70 a barrel by
0121 GMT, after gaining nearly 3% on Thursday. U.S. oil CLc1
was up 50 cents, or 1%, at $47.28 a barrel, having also risen
almost 3% in the previous session.
That leaves prices set for a sixth consecutive week of gains
as promising vaccine trials helped quell gloom over record
increases in the number of new infections and deaths around the
world in the coronavirus pandemic.
Britain began inoculations this week and the United States
could start vaccinations as early as the coming weekend, while
Canada on Wednesday approved its first vaccine with initial
shots due from next week. "The recovery from the pandemic will accelerate once a
vaccine is widely available, further supported by ongoing fiscal
and monetary stimulus from governments around the world," ANZ
Research said in a note.
Outside advisers for the U.S. Food and Drug Administration
have voted to endorse emergency use of Pfizer's PFE.N vaccine,
paving the way for the agency to authorise its use to inoculate
a nation that has lost more than 285,000 lives to COVID-19.
"The broad market rally is expected to continue next year,
with commodities set for a positive year amid an improving
economic backdrop," ANZ said.
A big jump in U.S. crude stockpiles served as a reminder
that there is still plenty of supply available, but was all but
ignored as bulls ran through the market this week.
They were encouraged by signs that Asian demand is strong,
with India's biggest refiner saying that it was operating at
100% capacity of all its nine units for the first time since
early this year.