20.07.202019:18:00UTC+00Oil Futures Settle Higher As Demand Concerns Fade Slightly On Vaccine News

Crude oil prices moved higher on Monday, as worries about energy demand outlook faded slightly on news about a potential coronavirus vaccine proving to be safe following an early-stage human trial.

According to a report in medical journal The Lancet, a potential coronavirus vaccine developed by Oxford University with AstraZeneca seems to be safe and has produced strong immune response in early-stage human trial.

Also, U.S. drugmaker Pfizer and CanSino Biologics, China, have reportedly found positive responses for their candidates today.

Meanwhile, after failing to come to any positive decision about the size and composition of a proposed recovery plan, the European Union leaders are reportedly set to arrive at a compromise soon.

European Council President Charles Michel has proposed a new figure of ?390 billion in grants combined with smaller rebate, as against an initial proposal of ?400 billion. Still, the size is higher than the ?350 billion proposed by countries including Austria, Denmark, Sweden, and the Netherlands.

West Texas Intermediate Crude oil futures for August ended higher by $0.22 or about 0.5% at $40.81 a barrel.

Brent crude futures moved up $0.15 or about 0.35% to $43.29 a barrel.

AstraZeneca Plc. said Monday that the interim Phase I/II trial data showed that COVID-19 vaccine candidate is safe and induced immune response. The company is developing a coronavirus vaccine by the name AZD1222, in partnership with the University of Oxford.

The interim results published in The Lancet confirmed a single dose of the said vaccine resulted in a four-fold increase in antibodies to the SARS-CoV-2 virus spike protein in 95% of participants one month after injection. In all participants, a T-cell response was induced, peaking by day 14, and maintained two months after injection.