2020.11.1019:02:00UTC+00Oil Futures Settle Sharply Higher

Crude oil futures ended sharply higher on Tuesday, extending gains from previous session, as optimism over potential coronavirus vaccine continued to outweigh worries about energy demand outlook.

Also, possibility of OPEC+ tweaking their supply cut pact in the event of a drop in demand helped ease concerns over excess supply.

West Texas Intermediate Crude oil futures for December ended up $1.07 or about 2.7% at $41.36 a barrel.

Brent crude futures were rising $0.54 or 1.3% at $42.94 a barrel.

After Pfizer reported that its coronavirus vaccine is more than 90% effective, U.S. President-elect Joe Biden heralded the positive new development in the race for a vaccine, but said it will still be several months before most of the country is inoculated.

The results were based on the first interim efficacy analysis conducted on November 8, 2020 by an external, independent Data Monitoring Committee from the phase 3 clinical study. The Committee has not reported any serious safety concerns.

Meanwhile, markets were looking ahead to weekly oil inventory data. While the American Petroleum Institute (API) will release its weekly oil report later today, the Energy Information Administration (EIA) will release weekly inventory data Wednesday morning.