Brent crude exceeded $50 a barrel for the first time in nine months on hopes of a faster demand recovery following the release of COVID-19 vaccines. Energy Select Sector SPDR ETF gained 4% to lead the S&P sector standings while the top five gainers on S&P 500 were all oil and gas producers.
- February Brent gained 4.4% to reach $51.01 per barrel while January WTI rose 4.7% to attain $47.65 per barrel
- Analysts believe the focus is now on vaccine distribution that could lead to a spike in demand, driving global supply back below normal levels next year
- Analysts also point that integrated oil majors are a good proxy for oil prices, as “their upstream Exploration & Production profits account for the majority of profits.”
Oil futures are currently gaining. CL! is up 3.49%
