Crude oil prices jumped 4% thanks to Moderna Inc’s statement of the Covid-19 vaccine

Source: Reuters | Editor: Anna Suci Perwitasari

KONTAN.CO.ID – LONDON. Oil prices jumped more than 4% on today’s trading. This managed to cover the losses that occurred in the session last weekend.

The positive catalyst that made oil prices fly came after Moderna Inc announced that the company’s Covid-19 vaccine trial had an effectiveness rate of 94.5%.

Monday (16/11) at 21.45 WIB, the price of Brent crude oil for the January 2021 delivery contract rose US $ 1.79 or 4.2% to US $ 44.57 per barrel.

Similarly, the price of West Texas Intermediate crude for December 2020 delivery shot US $ 1.84 or 4.6% to the level of $ 41.97 per barrel.

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“Vaccine euphoria has been in high esteem since last week, but a second treatment for Covid-19 suggests that large-scale vaccination programs, with sufficient numbers for the global population, are somewhat closer to the current reality,” said Rystad Energy analyst Louise Dickson.

Moderna’s announcement comes after Pfizer Inc reported last week that its trial vaccine is more than 90% effective. This raises hopes that the damage caused by the coronavirus pandemic to the global economy can be reduced.

Crude oil prices are also supported by data showing rebound on the Chinese and Japanese economies. Where, Chinese factories processed the crude oil daily level record last October.

Both WTI and Brent rose more than 8% last week on vaccine hopes and hopes that the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, will keep production lower next year to support prices.

The group, known as OPEC +, has cut production by around 7.7 million barrels per day (bpd), with compliance seen at 96% in October, and has planned to increase production by 2 million bpd from January 2021.

OPEC + will hold a ministerial committee meeting on Tuesday which can recommend changes to production quotas when all ministers meet on November 30 and December 1.

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“There is no denying that the oil market is completely in OPEC + hands,” said Bjarne Schieldrop, SEB’s chief commodity analyst.

“That organization is the only reason why the current oil price is not US $ 20 per barrel. Therefore, their upcoming meeting on November 30-December 1 is no less important,” concluded Schieldrop.