Crude oil prices have increased dramatically. Oil bulls are roaring loudly over reports showing that several COVID-19 vaccine makers have seen positive results on their progress.
- At the time of filing this report, Brent oil futures have exceeded $ 44 / bbl.
- West Texas Intermediate futures gained 0.60% to trade at $ 41.59 / bbl.
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Moderna Inc. recently revealed that its mRNA-1273 candidate has considerably greater efficacy and better storage conditions than its main US rivals, Pfizer Inc. and BioNTech product BNT162b, raising hopes that the days of the pandemic COVID-19 are now counted.
Such a macro prompts oil bulls to break their old resistance level, with oil traders basing their hopes on higher energy demand for 2021.
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What they say
Stephen Innes, The chief global market strategist at Axi, in a note to Nairametrics, also attributed recent gains to macros from COVID-19 vaccines, triggering greater risk-taking.
“It was a good start to the week for the oil markets, reflecting the tailwind of the vaccine which has led to a strong appetite for risk across all assets.
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“Although cases of COVID-19 continue to rise, the economic impact currently appears to be mitigated by the weak desire to bring economies back to full lockdown – Biden’s new team indicated this weekend, signaling its preference for targeted measures.
“On the supply side, Baker Hughes’ rig count has shown a +10 w / w build at 236, continues to progress from troughs but still very far from the ~ 400 needed to keep production in. the lower 48. Nonetheless, sentiment around the price of oil in the near term will be determined by the effects of COVID-19 demand and OPEC + actions to offset them. At the same time, the long-term market is focused on vaccines. “
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It’s fair to say that with the startling news coming from the world’s leading COVID-19 vaccine markers through the lens of oil markets, there’s a good chance that social mobility will return close to the pre-COVID-19 era plus late in 2021, thus increasing the already weakened energy demand prevailing in the world.
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