Fundamental analysis
24 August, 2021
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 will follow a potential step up in U.S. coronavirus vaccination rates. 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, 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. Also boosting prices, U.S. crude and gasoline inventories likely declined last week, while distillate stockpiles are expected to have increased, a preliminary Reuters poll ahead of industry data showed on Monday. Indian refiners' crude throughput in July bounced to its highest in three months as fuel demand rebounded, which supported prices.
