Crude closed over 8% higher yesterday on news of successful trials of a coronavirus vaccine by Pfizer. The vaccine was reported as being 90% effective and oil markets responded positively. Crude is continuing gains this morning as markets wait on inventory news for the week.
The news of the vaccine gave oil traders hope that the pandemic could be reigned in next year and people could go back to living a more normal life which would include going out more and traveling. Coronavirus infections have surpassed 50 million globally causing countries in Europe to impose a second wave of lockdowns to slow the spread of the virus. Fuel demand around the world is down due to lockdowns and travel restrictions caused by the pandemic.
Saudi Arabia has consistently stated that it would take necessary measures to balance the market and recently suggested that OPEC+ could adjust its current supply cut agreement to take more barrels off the market if rising infections cause slowing demand this winter before a vaccine is widely available.
In early trading today, crude prices are up. Crude is currently trading at $40.79, a gain of 50 cents.
Fuel prices are up this morning. Diesel is trading at $1.2384, a gain of 2.2 cents. Gasoline is trading at $1.1751, a gain of 1.4 cents.