oil and gas

Brax: Gasoline and fuel oil are availabl...
January 16, 2021
Maersk secures well UK contract for Maer...
January 16, 2021
Landmark stratigraphic study will boost ...
January 11, 2021

oil and gasNovember 11, 2020

Oil soars 8% on promising vaccine results


Oil surged about 8% on Monday, putting it on track for its biggest daily gain in more than six months after Pfizer announced promising results for its COVID-19 vaccine, boosting risk assets around the globe.

Both contracts rose more than $4 earlier in the session and traded more than 120% of last session’s volumes.

“The oil complex is joining in the bullish euphoria of today’s optimistic vaccine headlines as well as the weekend election results by trailing the equities higher,” said Jim Ritterbusch of Ritterbusch and Associates in Houston.

Pfizer said its experimental vaccine was more than 90% effective in preventing COVID-19, based on initial data from a large study, a victory in the battle against a pandemic that has forced lockdowns around the world and led to a drop-off in fuel demand.

Wall Street, which oil prices often follow, reached all-time highs after the announcement. [.N]

Meanwhile, Saudi Arabia said an OPEC+ oil output deal could be adjusted to balance the market. The kingdom’s energy minister Prince Abdulaziz bin Salman said the OPEC+ deal on oil output cuts could be adjusted if there was consensus among members of the group, increasing the prospect of tighter supplies and higher oil prices.

OPEC+, which includes the Organization of the Petroleum Exporting Countries (OPEC) states, Russia and other producers, is currently cutting 7.7 million barrels per day (bpd), and is considering reducing those cuts to 5.7 million bpd from January. If OPEC+ maintains the current curbs on output, it would tighten supply and lead to higher prices. Reuters