Oil prices rise above $50 as Covid vaccine optimism offsets new lockdowns

Oil rose further above $50 a barrel on Tuesday as optimism from the roll-out of coronavirus vaccines balanced out tighter lockdowns in Europe and forecasts of a slower demand recovery.

The United States began vaccinating people on Monday as the country’s Covid-19 death toll crossed the 300,000 mark.

Britain and Canada have also begun to administer shots.

Brent crude was up 14 cents, or 0.3% at $50.43 a barrel at 1435 GMT (9:35 a.m. EST). U.S. West Texas Intermediate (WTI) crude was up 26 cents at $47.25.

Oil prices have recovered in the past few weeks, with Brent reaching $51.06 on Dec. 10, its highest since March, supported by hopes of a recovery in demand. Prices had dropped to historic lows in March as the pandemic took hold.