Crude oil shoots up 2 per cent as vaccine hopes spur up demand outlook

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Crude oil shoots up 2 per cent as vaccine hopes spur up demand outlook

On Monday, a gauge of demand-sensitive commodities had witnessed a maverick upswing despite soaring pandemic cases across the globe while both US and UK crude oil futures’ prices stepped up more than 2 per cent following reveal of media headlines that one or two pandemic vaccines might be available in Eurozone and the United States as early as by early-December, denting fears of a deluge of demand crunch in context of a clattering supply glut by January 2021.

Besides, in the latest flashpoint of an auspicious development in pandemic vaccine, British drugmaker AstraZeneca said late on Monday that its pandemic vaccine which it had developed in combination with the University of Oxford, could be 90 per cent effective, overturning an earlier statement that said the AstraZeneca vaccines were 62 per cent effective in late-stage human trials, fleshing up investors’ hopes.

Crude oil extends rally on pandemic hopes

In point of fact, apart from a flurry of upbeat media headlines on advancements of pandemic vaccines, crude oil futures’ prices scheduled to be expired on December 21 ramped up further after Markit US Composite PMI data had revealed that the US business activity had grown by its fastest pace in more than five years in November, while upbeat factory data from China had brightened up the fundamentals for both US and UK crude oil futures’ prices.

Citing statistics, on Monday’s commodity market round off, UK crude futures’ prices climbed 2.45 per cent to $46.06 per barrel, while the US West Texas Intermediate futures’ prices added 1.51 per cent to $43.06 a barrel, extending last week’s rally that had witnessed a weekly percentage gain of roughly 5 per cent for both of the crude oil futures.

Meanwhile, addressing to a pandemic vaccine-led rally on global equity and commodity markets, President of Ritterbusch and Associates in Galena, Illinois, Jim Ritterbusch said on the day’s market wrap-up, “Another dose of favorable coronavirus vaccine news today has prompted a renewed upswing in the equities that has easily spilled into the oil space”.