Oil steady as vaccine news counters rise in virus cases

TOKYO, July 21 (Reuters) - Oil prices were little changed on
Tuesday, trapped in the narrow trading band of the past three
weeks as investors gauged hopes for a recovery in oil demand
against fears of new lockdowns due to a growing number of
coronavirus cases.
Prices were offered some support by positive news on the
development of vaccines as drugmakers and medical institutions
rush to find a way to counter the world's worst health crisis in
a century. Brent futures LCOc1 were up 15 cents, or 0.4%, at $43.43
by 0117 GMT, while West Texas Intermediate (WTI) edged up 2
cents to $40.83.
The closing prices of both Brent and WTI have traded within
a $2 channel so far this month.
In China, some cinemas reopened on Monday after a six-month
closure, raising hope a recovery from the pandemic is holding in
the world's second-largest economy, where the outbreak first
started. "With major economies opening ... demand should pick up for
oil, and more so if a vaccine becomes available soon," said
Fawad Razaqzada, market analyst at ThinkMarkets.
However, other countries from the United States to India are
still posting record numbers of infections, while some nations
such as Spain and Australia are battling renewed outbreaks.
More than 14.6 million people have been reported to be
infected by the novel coronavirus globally and 606,979​ have
died, according to a Reuters tally. Hope is being giving from a number of studies and tests
showing promise for various vaccines.
Early data from trials of COVID-19 vaccines released on
Monday, raised confidence that a vaccine may be created although
any breakthrough will take time to reach the billions of people
needed.
In the first big energy deal since the coronavirus crushed
fuel demand, Chevron Corp CVX.N said on Monday it would buy
oil and gas producer Noble Energy Inc NBL.O for about $5
billion in stock.