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Bloomberg
Oil rose in New York as Moderna Inc reported its Covid-19 vaccine is highly effective against the virus.
Moderna’s shot had 94.5% efficacy in a preliminary analysis of a large, late-stage clinical trial. That followed similar positive news for a vaccination being developed by Pfizer Inc. last week, buoying risky assets globally.
The full impact of a vaccine on crude demand is still some way off. Yet prices were also buoyed by a monthly rebound in China’s oil processing, with consumption in Asia still vastly outpacing that of other regions.
While the near-term demand picture shows European consumption wavering as lockdowns re-emerge, the US plans more local measures rather than nationwide restrictions to tackle the virus. The uneven demand outlook presents a challenge for Opec+, whose monitoring committee meets on Tuesday before a key policy gathering at the end of the month to decide on production.
In the latest sign that the demand recovery east of the Suez Canal is offsetting weakness in the West, Brent’s market structure has firmed sharply.