On Monday, both US WTI (West Texas Intermediate) and UK crude futures’ prices soared more than 2 per cent after opening up the week in an upbeat tenure as demand concerns were cornered substantially after reveal of the Cambridge-based biotech firm Moderna’s late-stage human trial results for its pandemic vaccine that had shown a 94.5 per cent efficacy to prevent the pandemic contagion, while a surprise drop in US crude oil inventory last week had added to further bullish wave.
In point of fact, Monday’s gains in both US and UK crude oil futures scheduled to be expired on December, were almost entirely fuelled by vaccine optimisms, while a Moderna remark that its pandemic vaccines could be stored in normal hospital refrigerators, rubbing out worries over millions of dollars in additional expenses to restructure logistics for Pfizer vaccine’s cold chain which have to be transported below -70 degree Celsius, came forth as a latest sign of encouragement that the worst of pandemic’s fiscal consequences might soon be over.
Crude oil surges on Moderna vaccine optimism
On top of that, crude oil futures’ prices were also boosted by a raft of upbeat economic data from China and Japan, while China Govt. data had revealed that its refineries had processed a record level of crude oil last month.
Besides, prospects over further output cuts from OPEC members alongside their allies following a two-day meet of OPEC+ nations scheduled to take place on November 30 and December 1, had ramped up investors’ optimism further.
Quoting statistics, on Monday’s commodity market wind down, Brent crude futures’ prices scheduled to be expire on January 2021, surged 2.43 per cent to $43.82 per barrel after rising over 4 per cent earlier in the session, while the US West Texas Intermediate crude futures’ prices scheduled to be expired on December had wrapped up the day 3 per cent higher to $41.34 per barrel.
Meanwhile, referring to a 7.7 million barrels per day of output cut with 96 per cent compliance rate as of October 31 from the OPEC+ nations, an SEB Chief Commodity Analyst, Bjarne Schieldrop said, “There is no denying that the oil market is fully in the hands of OPEC+.
The organisation is the only reason why oil prices today are not $20 a barrel. As such, their upcoming meeting on Nov 30-Dec 1 is no less hugely important. ”