Oil rises on US vaccine rollout

NEW YORK -Oil prices rose on Monday on optimism over the pace of coronavirus vaccinations in the United States and after the Yemen-based Houthi movement said it fired missiles on Saudi oil sites.

Still, crude prices have remained rangebound in the past three weeks, as growing expectations of surging US economic activity are balanced by the slow rate of vaccination in

Europe and anticipation of additional supply from Iran in coming months.

Brent rose 33 cents to settle at $63.28 a barrel. US West Texas Intermediate (WTI) rose 38 cents to settle at $59.70 a barrel.

The United States has fully vaccinated 22 per cent of its population, while the United Kingdom has vaccinated 11 per cent fully, according to the Reuters vaccine tracker.

Still, other countries are not faring as well, with France and Germany at around 6 per cent vaccinated.

“Oil prices rose today as a result of progress in vaccination campaigns in the US, which are helping the country’s plan to spend,” said Louise Dickson, Rystad Energy’s oil markets analyst.

“The upward momentum in other countries is promising, but large discrepancies remain globally,” Mr Dickson added.

Prices also found some support after Yemen’s Iranaligned Houthi movement said it had fired 17 drones and two ballistic missiles at Saudi targets, including towards Saudi Aramco refineries in Jubail and Jeddah.

There was no immediate Saudi confirmation.

Saudi Aramco, the state oil firm, did not comment when contacted by Reuters.

“While there are still plenty of reasons to be bullish, market players have become more cautious as infections have surged in Europe, India and some emerging markets, while vaccine rollouts have proved slower than anticipated,” said oil broker PVM’s Stephen Brennock.