The price of oil has hit its highest level since early September.
As markets are optimistic around the vaccine news, the demand for oil should continue to increase if the vaccine is rolled out.
Brent crude is up 1.67% at $45.71 per barrel, which is the highest price in nearly three months.
“Positive sentiment continues to be driven by the recent good news about the efficacy of coronavirus vaccines in development and the expectation that the OPEC+ meeting at the end of this month could see the group extend current cuts by 3-6 months,” said Stephen Innes, Chief Global Markets Strategist at axi.
European markets also cheered on Monday’s opening and reached the highest level since the end of February.
The Europe-wide Stoxx 600 index climbed 0.7%. The FTSE 100 was up 0.5%, whilst the DAX and Spanish IBEX rose 0.85% and the CAC was 0.9% up.
Travel shares boosted the blue-chip index on Monday. Fiona Cincotta of City Index shared why restrictions are hoping to ease amid the new vaccine.
“AstraZeneca announced that its vaccine candidate developed with the University of Oxford is around 70% effective. Whilst normally this would be an excellent result, the fact that it comes after Moderna and Pfizer claiming 95% effectiveness has certainly taken the shine off the announcement. However, on the plus side, the AstraZeneca jab is far cheaper and easier to store than the other two,” she said.
“Adding to the upbeat mood in the UK, the government confirmed that lockdown will end on 2nd December and the UK will move to a 4 Tier system. This should provide a massive boost to the high street retailers which have been a clear victim of the covid pandemic. Shops, along with bars, restaurants and gyms reopening in all areas of the UK in time for the key Christmas trading period means that the UK economy will once again be able to move forward on its recovery path.”
