Oil closes at eight-month peak on vaccine progress, Biden transition

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Oil closes at eight-month peak on vaccine progress, Biden transition

On Tuesday, both US and UK crude oil futures’ prices scheduled to be expired on December 21 surged as much as 4 per cent to spike to their highest level since March as an encouraging pandemic vaccine trial result from AstraZeneca had ebbed off concerns related to a higher expense on logistics and storage requirement for Pfizer and Moderna vaccines, momentarily cancelling out the worries over a likely supply glut as early as January 2021 over hopes a quicker-than-anticipated recovery in demand in the global crude oil market.

On top of that, as the US President-elect Joe Biden had begun to prepare his troops, who would be taking charge of Oval Office at least until January 2023, had calmed down the November 3 US Presidential election-associated storms.

Crude oil extends rally on pandemic vaccine progress

Aside from a rapidly emerging hopes of an earlier recovery in global demands, crude oil futures’ prices had also received an upscaled boost after AstraZeneca had been quoted saying earlier in the day that its pandemic vaccine could be 90 per cent effective to cancel out the pandemic infections while petering out concerns related to an even distribution given the extent of cold chain overhauls required for the vaccines of Pfizer and Moderna.

Nonetheless, industry experts were quoted saying that it might take even years to vaccinate a large chuck of global population, while AstraZeneca’s vaccine might not be readily available at least until early 2021.

However, the head of Pandemic control and supervision, Dr. Anthony Fauci said over the weekend that a pandemic vaccine could be available as early as by mid-December, while the Pfizer Inc. had already received regulatory authorization to market its pandemic vaccine for emergency usage.

Citing statistics, after rising as much as 2 per cent yesterday, the UK crude futures’ prices jumped 3.9 per cent to wrap up the day at $47.86 a barrel, while the US WTI (West Texas Intermediate) crude oil futures’ prices climbed 4.3 per cent to wind down the day at $44.91 a barrel.

Meanwhile, citing that the latest leg of petroleum rally was almost entirely galvanized by an optimism over pandemic vaccines which industry analysts believe could act as a much-required lifeline for fossil-fuel demands in 2021, a partner at Again Capital in New York, John Kilduff said, “The petroleum complex is the vaccine trade.

Until we can see the other side of the pandemic, the market is going to be mired in slack demand that is going to keep the overhang extensive”.