WTI climbs to fresh 7-month highs above $47

• Crude oil prices are rising sharply on Thursday.
• Upbeat demand outlook is helping WTI reach multi-month highs.
• Investors await US FDA's decision on coronavirus vaccine.

After spending the first half of the week fluctuating above $45, the barrel of West Texas Intermediate (WTI) gathered bullish momentum on Thursday and advanced to its highest level since early March at $47.71. As of writing, the WTI was up 3.4% on a daily basis at $47.23.

Demand dynamics lift WTI

With OPEC and non-OPEC producers last week finally reaching an agreement on crude oil output in 2021, investors' focus shifted to the energy demand outlook. Vaccine optimism and better prospects for additional stimulus in the US revşve hopes for a steady recovery in oil demand. 

On Wednesday, the US Department of Health and Human Services (HHS) noted that vaccinations with Pfizer-BioNTech COVID-19 vaccine could start next week. The US Food and Drug Administration's (FDA) is largely expected to authorize the emergency use of Pfizer's and Moderna's coronavirus vaccines before the end of the week.

Meanwhile, the latest developments suggest that US lawmakers are closing in on a relief bill and helping risk-sensitive oil prices push higher. House Speaker Nancy Pelosi said on Thursday that bipartisan negotiations on COVID-19 aid were making great progress.

Technical levels to watch for