Brent crude oil futures rose above $50 a barrel for the first time since March, with the prospect of coronavirus vaccines boosting the market’s outlook for the coming year.
The global benchmark increased as much as 2.7% to $50.17 a barrel by 9:41 am New York time. It follows a sharp market rally that has been buoyed by positive breakthroughs in the race for a Covid-19 vaccine. With the outlook for 2021 firming in recent weeks, the OPEC+ alliance reached a compromise deal to gradually taper production cuts next year.
The futures curve has also flipped on its head, trading in a structure known as backwardation that makes it profitable to roll contracts from one month to the next. That is also attracting a rush of new flows to the market.
