Oil climbs as full US approval of Pfizer vaccine raises hopes of recovery

- Decline in Indian oil throughput weighs on prices

Oil prices increased on Tuesday after the US health authority granted full approval of Pfizer-BioNTech's COVID-19 vaccine, raising optimism for a faster economic rebound and a resumption of fuel demand in the country.

International benchmark Brent crude was trading at $68.76 per barrel at 0630 GMT for a 0.57% gain after closing Monday at $68.37 a barrel.

American benchmark West Texas Intermediate (WTI) traded at $65.95 a barrel at the same time with a 0.47% increase after ending the previous session at $65.64 per barrel.

The boost in prices came as the US Food and Drug Administration (FDA) gave full approval to Pfizer-BioNTech's COVID-19 vaccine on Monday, nine months after it rolled off the assembly lines under special emergency use authorization.

The approval was widely expected and could lead to more workplaces, universities, restaurants, gyms, and entertainment venues requiring full vaccination – a step experts say will increase mobility and thus help a speedier return of fuel demand in the world’s largest oil-consuming country.

Supporting the prices, India's domestic oil production fell 3.78% in July compared to the same month last year.

However, country's gas production increased by 18.36% in July, according to the monthly production report of the country’s ministry of petroleum and natural gas.

By Sibel Morrow

Anadolu Agency

energy@aa.com.tr