Both US and UK crude oil futures’ prices sky-rocketed as much as 8 per cent on Monday, marking up their steepest intra-session increase in more than five months, as investors’ optimism of a plausible demand hike in crude oil futures prices stepped up audaciously after one of the frontrunners in pandemic vaccine trial, Pfizer Inc.
had revealed promising trial results of its pandemic vaccine. Besides, on Tuesday's early US trading hours, US West Texas Intermediate and UK crude oil futures were trading roughly 1 per cent higher. Aside from that, prospects of potential policy changes under a Biden Administration in China issue alongside a blazing US-EU trade row, had ramped up market participants’ hope, while Monday’s commodity market witnessed further bullish wind for crude oil futures after OPEC-kingpin Saudi Arabia had been quoted saying that the OPEC members alongside its allies might intensify their current output cuts further ahead of a likely demand slump in winter this year.
Pfizer vaccine hopes lift up crude oil futures' prices
In point of fact, Pfizer’s promising human trial results for its pandemic vaccines came forth against a baleful backdrop of global crude oil industry which had been failing to grapple with a tattering header in oil demands, however, as the American multinational pharmaceutical was quoted saying that its pandemic vaccine had shown an above 90 per cent efficaciency to prevent pandemic infections, a gauge of global equity indices alongside crude oil futures’ prices which were pummelled as much as 4 per cent on Friday, had sharply clawed back which crude oil futures’ surging as much as 8 per cent.
Quoting statistics, on Monday’s commodity market closure, UK crude futures’ prices torrented 7.48 per cent to $42.40 a barrel and US West Texas Intermediate crude futures’ prices snowballed 8.48 per cent to $40.29 per barrel, paring all of their losses stomached during the week that ended on November 1 while both US and Brent crude futures had witnessed their steepest weekly percentage decline in more than five months, falling over 10 per cent.
Nonetheless, crude oil futures’ prices gained roughly 5 per cent last week. Meanwhile, citing cautious optimism on Pfizer Inc.’s trial result for its pandemic vaccine, a partner at Again Capital in New York, John Kilduff said, “Oil particularly reacted to the news because of what it means.
The pandemic is hitting transportation terrifically and 80% of crude oil barrels go to transportation fuel, so I think this is a logical response”.