Oil highest since March on vaccine progress, Biden transition

Oil traded at its highest level since March as markets broadly rallied on the start of the US presidential transition process and with the demand outlook strengthening after a string of positive vaccine breakthroughs.

Brent futures rose as much as 1.4% in London, accompanied by a sharp rally in the shape of the futures curve as physical markets in Asia showed signs of strength. The triggering of a formal transition process to US President-elect Joe Biden buoyed stock markets and pushed down the dollar on Tuesday.

With coronavirus vaccines appearing more likely in recent weeks and crude demand in Asia soaring, the gains in the shape of the oil futures curve have been even more stellar than the almost 24% rise in Brent prices so far this month. The international benchmark’s nearest contract moved to a premium to the next month on Monday for the first time since July -- a bullish structure known as backwardation that indicates tight supply.