Last checked at 
(Updates prices, adds backwardation and graphic)
By Bozorgmehr Sharafedin
LONDON, Nov 25 (Reuters) - Oil rose for a fourth straight
session on Wednesday as the market shrugged off an industry
report showing U.S. crude stockpiles rose more than expected,
extending a rally driven by hopes that a COVID-19 vaccine will
boost fuel demand.
Brent crude was up 74 cents, or 1.5%, at $48.60 a
barrel by 1059 GMT, having risen almost 4% in the previous
session.
West Texas Intermediate crude gained 58 cents, or
1.3%, to $45.49, after rising more than 4% on Tuesday.
"Crude oil prices are trading at their highest levels since
early March, supported by positive market sentiment as a result
of vaccine news and strong oil demand in Asia," said UBS oil
analyst Giovanni Staunovo.
"We maintain our bullish outlook for next year and target
Brent to hit $60 per barrel at the end of 2021," he added.
AstraZeneca said on Monday its COVID-19 vaccine was
70% effective in trials and could be up to 90% effective,
providing another weapon in the fight to control the pandemic.
The formal start of U.S. president-elect Joe Biden's
transition to the White House has also improved the global
outlook.
A weak dollar has also provided support for crude prices as
a lower dollar makes oil less expensive for buyers.
"The recent depreciation of the U.S. dollar has helped
temper the impact of surging oil prices for some of the world’s
largest consumers of energy," said Stephen Brennock of broker
PVM.
Brent has moved into backwardation, a market structure in
which oil for immediate delivery costs more than supply later.
Backwardation encourages inventories to be drawn down.
The premium at which Brent crude futures for February
delivery were trading above January <LCOc1-LCOc2> stood at 13
cents, the highest level since July.
The market seemed shrug off latest data from the American
Petroleum Institute (API) on Tuesday that showed U.S. crude
stocks rose by 3.8 million barrels in the week to Nov. 20 to
around 490 million barrels.
Official U.S. government crude inventory data will be
released later on Wednesday.
Analysts also said that a viable vaccine was not likely to
be ready for mass use in the next few months, meaning lockdowns
and travel restrictions will be in place into next year.
That makes it likely that OPEC+, made up of the Organization
of the Petroleum Exporting Countries (OPEC) and allies including
Russia, will continue production cuts into 2021 after a meeting
set to start on Nov. 30 following technical talks this week.
OPEC+ producers have been withholding supplies to support
prices after pandemic lockdowns earlier this year caused an
evaporation in demand.
They are currently due to increase production by 2 million
barrels per day -- about 2% of global demand before the pandemic
-- from January.
(Reporting by Bozorgmehr Sharafedin in London; additional
reporting by Aaron Sheldrick in Tokyo; editing by Jane Merriman
and Jason Neely)
