2020.12.1609:31:00UTC+00Oil Prices Rise On Stimulus Bets

Oil prices rose on Wednesday as progress on vaccine rollouts continued and Congressional leaders inched closer to a breakthrough on U.S. stimulus.

The upside was capped after industry data showed a surprise gain in crude oil inventories in the United States.

Benchmark Brent crude rose half a percent to $50.99 a barrel, while U.S. West Texas Intermediate (WTI) crude futures were up half a percent at $47.84 a barrel.

Hospitals across the United States are ramping up Covid-19 vaccinations as a second vaccine developed by Moderna appears poised to receive emergency-use authorization by the U.S. Food and Drug Administration.

Senate Majority Leader Mitch McConnell vowed Tuesday that Congress would not adjourn for the year until the $748 billion relief deal is clinched, in a sign that lawmakers will send a relief bill to President Donald Trump's desk by the end of the year.

Markets await the outcome of a FOMC meeting later today to see whether the Fed will step up monetary policy accommodation by focusing more asset purchases on the long end of the Treasury yield curve.

The American Petroleum Institute (API) reported on Tuesday a build in crude oil inventories of 1.973 million barrels for the week to December 11, contrary to expectations for a draw of 1.9 million barrels.