Oil rises as full U.S. clearance for COVID-19 vaccine stokes demand hopes
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Oil prices rose on Tuesday after the U.S. drug regulator granted full approval to the Pfizer Inc/BioNTech SE COVID-19 vaccine, stoking investor hopes that higher fuel demand would follow a potential rise in U.S. coronavirus vaccination rates.
Brent crude oil futures were up 46 cents, or 0.7%, to $69.21 a barrel by 0648 GMT, while U.S. West Texas Intermediate (WTI) had gained 34 cents, or 0.5%, to $65.98.
Both benchmarks jumped more than 5% on Monday, helped by a weaker U.S. dollar, after marking their biggest week of losses in more than nine months last week.
The U.S. Food and Drug Administration (FDA), which last December authorised the Pfizer/BioNtech two-dose vaccine for emergency use, has now issued full approval for use in people age 16 and older.
Health officials hope the action will convince unvaccinated Americans that the shot is safe and effective, and expect it could also prompt more state and local governments, as well as private employers, to impose vaccine mandates.
“With many corporations and government agencies likely to enforce vaccine mandates, return to office travel should dramatically pick up in the fall,” said Edward Moya, senior analyst at OANDA.
