Corona Virus
Stay Safe, FollowGuidance
Fetching Location Data…
Vladimir Zernov
WTI Crude OIl

Oil Video 23.11.20.


AstraZeneca’s COVID-19 Vaccine Trial Results Provide Support To Oil

Today, AstraZeneca reported that its coronavirus vaccine had efficacy of up to 90%. Previously, Pfizer/BioNTech and Moderna have also reported solid results of late-stage trials of their vaccines.

Know where WTI Crude Oil is headed? Take advantage now with 

75% of retail CFD investors lose money

At this point, vaccine optimism is the key catalyst that is pushing oil to higher levels. The near-term situation for oil demand remains challenging. It looks like European countries will cautiously emerge out of their lockdowns in an effort to save Christmas so demand for oil in Europe will remain under pressure in December.

In my recent article on oil, I wrote that the market needed several bullish inventory reports or positive vaccine news to settle above the $43 level. While it remains to be seen whether upcoming inventory reports will provide any support to the oil market, additional vaccine news is already in play.

The key question is whether the current optimism will be sufficient enough to push oil above August highs at $43.75. In my opinion, this is a plausible scenario in case oil traders continue to ignore near-term developments on the oil demand front and focus exclusively on the outlook for oil demand in 2021.

The Number Of U.S. Oil Rigs Declines By 5

The recent Baker Hughes Rig Count report indicated that the number of U.S. rigs drilling for oil declined by 5 to 231. The number of working oil rigs has been in a steady uptrend in recent weeks, and a sudden decline is a favorable development for the oil market.

The previous EIA Weekly Petroleum Status Report showed that U.S. oil production increased from 10.5 million barrels per day (bpd) to 10.9 million bpd. However, EIA is not bullish on U.S. domestic oil production and believes that it will not be able to get far away from 11 million bpd.

The recent decline in the number of U.S. oil rigs supports this view, but it’s impossible to draw conclusions from just one data point. If the number of U.S. rigs drilling for oil continues to decrease or at least stabilizes near current levels, the market will likely believe that U.S. production will not increase above 11 million bpd, which will be bullish for oil.

For a look at all of today’s economic events, check out our economic calendar.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.