Brent hits strongest level since March, boosted by coronavirus vaccine hopes

Brent crude hit its highest levels since March as a third COVID-19 vaccine candidate boosted hopes of a faster recovery in fuel demand. 

U.S. President-elect Joe Biden had been given the go signal to begin his leadership transition. 

Brent crude futures gained 0.9%, or 43 cents, at $46.49 per barrel. U.S. West Texas Intermediate crude rose 1.1%, or 45 cents, at $43.51 per barrel. 

Brent climbed to a session high of $46.56 in early Tuesday trade, the highest level since March before Saudi Arabia started a price war with Russia, sending oil prices down. Both benchmarks are up 2% on Monday following last week’s gains of 5%. 

U.S. crude oil stockpile likely fell last week, while distillate inventories dropped for a 10th straight week. 

Investors are focusing on OPEC’s week of technical meetings to prepare for next week’s ministerial meetings. The committee will assess the need for extending the existing output policy in place to support prices amid the pandemic.