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Oil prices rise on hopes of coronavirus cure, Bonny Light loses 0.58%

Oil prices jumped on Tuesday on the back of favourable reports of vaccine trials and of a European Union rescue package deal, touching heights last witnessed in early March, when a price war broke out between Saudi Arabia and Russia.

Brent crude rose by 90 cents or 2.21% to $41.71 a barrel at 11:18 West Africa Time while United States’ West Texas Intermediate edged up by $1.07 or 2.47% to $44.35

Bonny Light, Nigeria’s premium oil grade, dipped by 25 cents or 0.58% to $42.92 per barrel at the last session.

But Qua Iboe, another national offering, climbed 42 cents or 0.97% up to $43.70.

Read also: Oil prices fall further over virus rise scare, Bonny Light loses 1.57%

The oil prices of Brent and WTI were bolstered by a pact among European Union dealers on a 750 billion euro ($859 billion) fund to reinforce economies taking a bashing from the novel coronavirus, raising optimism of fuel demand rebound.

The deal positions the European Commission to source several billions of euros across capital markets for 27 nations, a gesture of solidarity never seen in roughly seventy years of European integration.

Also provoking rise in oil prices was the data issued on Monday, indicating that an effective virus vaccine might be round the corner even if a worldwide launching will take time.

A number of cinemas on Monday restarted in China where the pandemic sprang late last year, after half a year of closure, a further indication of economic rebound in the world’s second largest economy and biggest importer of oil.

Economies like United States and India are reporting record surge in cases while Spain and Australia are confronting new waves of infections.

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