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In the trading on Monday (14), crude oil futures prices reached the highest closing price in 9 months due to the support provided by the United States in starting to receive the new corona vaccine, but the demand outlook from OPEC fell, which softened the price increase.
The new corona vaccine jointly developed by Pfizer (PFE-US) and Germany’s BioNTech (BNTX-US) was approved by the United States Food and Drug Administration (FDA) for emergency use in the United States last Friday, and shipments started over the weekend.
Robbie Fraser, global research and analysis department manager at Schneider Electric, said: “General optimism is related to the early stage of the new corona vaccine approaching vaccination, which has been a key driver of the increase in Raw oil”.
“Although this allows the market to more clearly anticipate long-term demand and inventory return to normalization, the crude oil market must first face an increasingly challenging winter. With the increase in the number of confirmed cases of new krona , the pace of demand recovery has slowed recently, especially the United States and many countries have implemented or are considering additional lockdown measures. “
OPEC released its monthly report on Monday, lowering its expectations for oil demand growth in 2021, stating that “the prospects for transportation fuels in developed economies in the first half of next year will continue to be impacted by the new corona virus and unclear job market. “
OPEC reduced world oil demand growth in 2021 by 350,000 barrels per day to 5.9 million barrels per day. OPEC has set oil demand in 2020 at 89.99 million barrels per day, a decrease of 9.77 million barrels per day from 2019, slightly lower than previous estimates.
- The price of WTI crude oil futures for January delivery rose 42 cents, or almost 0.9%, to settle at $ 46.99 a barrel.
- The price of Brent crude futures for February delivery rose 32 cents, or 0.6%, to settle at $ 50.29 a barrel.
According to Dow Jones market data, WTI crude oil futures and Brent crude oil futures reached their highest closing prices since the beginning of March.
Reports of an explosion at a tanker docked in Saudi Arabia’s Jeddah port on Monday also provided support for the price of oil.
Fraser said the tanker bombing was the latest sabotage incident involving Yemen’s Houthi rebels, and behind it was the shadow of Iranian support. “Iran is reportedly considering accelerating the increase in crude oil production because it is expected that under the leadership of the Biden administration, the United States will be able to return to the JCPA nuclear deal.”
At the same time, the Wall Street Journal reportedly reported that members of the Senate and House of Representatives are closing in on a compromise to reach a new corona epidemic relief deal, which will separate the $ 160,000 million in state and local assistance and liability protection in a separate package, with a view to the end of the year. An agreement was reached, leaving the original $ 908 billion bailout plan with $ 748 billion. However, the public remains skeptical about whether it can be achieved.
Despite this, the continued increase in the number of confirmed cases of the new crown in the United States and other regions has generated new lockdown restrictions and raised concerns about falling energy demand and prices.
Oanda market analyst Craig Erlam noted: “Germany has entered a tighter lockdown, and the number of confirmed cases and deaths in the United States has set a record. This is a recent downside risk. The current path towards vacation is still wrong. This can cause problems for the next few weeks. Low pressure. “
“However, due to the flexibility of OPEC +, downside risks may be limited.”
Other energy raw materials
- The price of gasoline futures for January delivery rose 0.9% to close at $ 1.3191 a gallon.
- The price of hot fuel oil futures for January delivery rose nearly 1.2% to close at $ 1.4544 a gallon.
- The price of natural gas futures for January delivery rose 3.5% to close at US $ 2,682 per million Btu.
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