Oil prices settle up, on promising COVID-19 vaccines

0 7

Crude oil prices rallied impressively higher. Oil bulls are roaring hard on reports showing multiple COVID-19 vaccine makers delivered positive outcomes on their progress.

  • At the time of filing this report, Brent oil futures broke above $44/barrel.
  • West Texas Intermediate futures gained 0.60% to trade at $41.59/barrel.

READ: Gold prices surge past $2,020 due to weaker U.S dollar

Moderna Inc. recently disclosed its candidate mRNA-1273 has considerably greater efficacy and better storage conditions than its arch American rivals, Pfizer Inc. and BioNTech product, BNT162b, raising hopes that the days of COVID-19 pandemic are now numbered.

Such macro is triggering oil bulls to break their old resistance level with oil traders pinning their hopes on a rise in energy demand for 2021.

READ: Crude oil prices up 12% in barely 4 days, triggered by OPEC+ proposed cuts


onebank728 x 90


GTBank 728 x 90GTBank 728 x 90

What they are saying

Stephen Innes, Chief Global Market Strategist at Axi, in a note to Nairametrics, also attributed the gains seen lately to macros coming from COVID-19 vaccines, triggering more risk-taking.

“It has been a solid start to the week for oil markets, reflecting the vaccine tailwind driving strong risk appetite across all assets.

<!– /21634543682/234989245


Coronation adsCoronation ads

READ: Most Nigerian banks may fail stress tests if economic downturn persists

“Although, COVID-19 cases continue to mount, the economic impact at present appears lessened by low desire to return economies to full lockdown – the incoming Biden team indicated as much at the weekend, flagging its preference for targeted measures.

“On the supply side, the Baker Hughes rig count showed a +10 w/w build to 236, continues to advance off the lows but is still very far below the ~400 needed to maintain production in the lower 48. Still, sentiment around the short-term oil price will be determined by COVID-19 demand effects and OPEC+ actions to offset them. At the same time, the longer-term market is a vaccine-driven one.”

READ: Over $500 million dollars worth of Bitcoins withdrawn from BitMEX

Bottom line

<!– /21634543682/Zenith_Bank 320×100

Zenith bank | USSD codeZenith bank | USSD code

UCAP adsUCAP ads



Jaiz bank adsJaiz bank ads

It is fair to say that the surprising news coming out from the world-leading COVID-19 vaccine markers viewing through the lens of oil markets, there are good chances of social mobility returning close to the pre-COVID-19 era later in 2021, thereby boosting the already weakened energy demand prevailing around the world.

<!– /21634543682/23188292 Coronation research 250×250


<!– /21634543682/23188292




first bankfirst bank



Fidelity adsFidelity ads


Stanbic IBTC Stanbic IBTC

Explore Data on the Nairametrics Research Website

Click here for the Source

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More