Oil price reaches highest level since March due to promising vaccine, Biden transition

Oil surged to $47 a barrel Tuesday, its highest level since in March on Tuesday, due to AstraZeneca's promising coronavirus vaccine that spurred demand recovery hopes and US President-elect Joe Biden's transition to the White House.

AstraZeneca said its COVID-19 shot was 70 percent effective in trials and could be up to 90 percent effective.

Vaccines from Pfizer/BioNTech and Moderna have earlier recorded positive results against the coronavirus.

Brent crude gained 45 cents, or 1 percent, to $46.51 a barrel in morning trade and hit $46.72, its highest since March 6.

Meanwhile, US West Texas Intermediate crude jumped 47 cents, or 1.1 percent, to $43.53.

According to Tamas Varga of broker PVM, he expects next year’s oil demand estimates to be amended upwards as the fight against the coronavirus is intensifying and is proving to be increasingly successful.

Also boosting oil and financial markets was the US transitioning to a Joe Biden presidency.