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In trading on Wednesday (18), crude oil futures prices closed higher due to updates on the new krone treatment and preventive measures, which allowed crude to reach its highest closing price since the beginning of the September, even after the EIA report showed that domestic crude inventories in the United States had risen for two consecutive weeks. Crude oil still held the gains.
Pfizer (PFE-US) said on Wednesday that the new corona vaccine candidate developed in cooperation with BioNTech SE (BNTX-US) was 95% effective in the final analysis of clinical trials, thus providing more optimistic progress in clinical research.
Robert Yawger, chief energy officer at Mizuho Securities, noted that after Pfizer announced the above news, the price of crude oil rose dramatically, causing WTI crude to challenge the key resistance point of US $ 43.06 per barrel. , which was a high of more than two months set on November 11.
Previously, Moderna (MRNA-US) announced on Monday that the candidate vaccine is currently confirmed in the final stage of research to reduce the effectiveness of the infection rate of the new coronavirus by 94.5%.
- The price of WTI crude oil futures for December delivery rose 39 cents, or nearly 0.9%, to close at $ 41.82 a barrel, but was outside the intraday high of $ 42.46.
- The price of Brent crude futures for January delivery rose 59 cents, or nearly 1.4%, to settle at $ 44.34 a barrel.
According to Dow Jones market data, WTI and Brent crude oil reached their highest closing prices since early September.
EIA report
The EIA announced on Wednesday that last week (11/13) US crude oil inventories increased by 800,000 barrels, more than expected. According to the S&P Global Platts survey, analysts on average expect crude oil inventories to rise by 100,000 barrels last week, but this is well below the 4.2 million barrel level announced by API on Tuesday.
The EIA report also showed that the Cushing Oil Storage Center in Oklahoma increased its inventory by 1.2 million barrels that week. At the same time, gasoline inventories increased by 2.6 million barrels and distillate oil inventories fell by 5.2 million barrels.
According to the S&P Global Platts survey, analysts expect, on average, gasoline inventories to increase by 300,000 barrels and distillate inventories to fall by 1.8 million barrels.
- The price of gasoline futures for December delivery rose 0.8% to close at $ 1.1629 a gallon.
- The price of thermal oil futures for December delivery rose 2% to close at $ 1.2640 a gallon.
- The price of natural gas futures for December delivery rose 0.7% to close at US $ 2.712 per million Btu.
Traders will continue to measure the progress of OPEC +. On Tuesday, the JMMC committee under OPEC + did not announce new production recommendations for the OPEC meeting at the end of the month and the OPEC + meeting on December 1.
Tariq Zahir, CEO of Tyche Capital Consulting, said: “The delay in providing guidance on production policy is not surprising and the situation will be clearer by month’s end.
OPEC + was originally scheduled to relax restrictions on production cuts starting next year, but due to the increasingly intensifying new corona epidemic, local lockdown measures have been implemented again, reducing demand prospects. , and the market increasingly believes that OPEC + will postpone restrictions on production cuts.
“OPEC is now opening its doors to look at various possibilities and see how severely demand may be affected in the coming weeks. It is worth noting that Libya’s oil production has also continued to rise. Until they reach their production levels. above, they will not be affected by any Limit moderation. “
“At present, energy prices will continue to weaken because the United States will implement more restrictions for the prevention of epidemics,” said Tariq Zahir.
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