Oil extended gains, following Monday’s rally on optimism that a potential Covid-19 vaccine could boost a recovery in transport demand.
Crude futures in New York approached $41 a barrel, after advancing more than 10% at one point on Monday. It comes after early findings showed that a vaccine developed by Pfizer Inc. and BioNTech SE protects most people from the virus.
While headline prices are gaining, there have also been sharp moves in the structure of the curve. Brent futures for six months ahead were at their strongest versus 12 months out since March, a sign that traders are growing more positive on supply and demand balances for the second half of the year. In another sign of strength, The Middle Eastern Dubai benchmark was trading in a bullish backwardation structure.
