Oil prices jump ten percent on news of Pfizer Covid-19 vaccine

Oil has rallied after reports of significant progress in the development of a Covid vaccine by pharmaceutical company Pfizer, agencies reported on Monday.

The news of the vaccine saw the biggest daily jump in the price of crude in six months, with a ten percent increase Reuters reported on Monday.

US stocks also increased, bolstered by reports of the vaccine and the prospect of improved trade relations under President-elect Joe Biden.

Pfizer announced on Monday that it had developed a vaccine with German firm BioNTech SE which was 90 percent effective in preventing infection.

"The vaccine is really driving markets. Most of the moves in stocks, bonds and commodities are related to the light at the end of the tunnel for the Covid-19 situation," Chris Zaccarelli, chief investment officer at Independent Advisor Alliance told Reuters.

"It's a game-changer in terms of consumer spending and consumer behaviour and it augurs well for future economic activity as we begin to see a reversal of trends caused by the pandemic."

Covid-19 has seen oil prices sink due to travel restrictions and lockdowns with the flight industry grinding to an almost complete halt.