With The Rising Hope For Vaccine, Price Of Crude Oil Shows An Upswing To 2-Month High

Oil Prices
Oil Prices

Crude Oil stock prices are on a continuous rise for the 3rd consecutive day. They have managed to touch US$42 owing to the US election outcomes, positive results of the COVID-19 vaccine, and an unexpected US inventory draw.

Pfizer, the world’s leading pharmaceutical firm, made an announcement regarding the 90% effectiveness of their third phase trial for coronavirus vaccine. This breakthrough result in vaccination has brought hope for an increase in the demand for energy fuel. Immediately, the stock prices of the worldwide crude oil witnessed an upsurge due to the potential demand in industrial, energy, and subsidiary sectors.

Crude Oil
Crude Oil

Fluctuations In Crude Oil Stocks

The stockpile of US crude oil saw an unexpected increase which increased the energy rates. American Petroleum Institute or API declared that the crude inventory dropped barrels worth 5.15 million in comparison to 0.89 million, within a week after 6th November. Diesel and gasoline stock declined as well.

Another lockdown is being implemented in Europe that will obviously halt transportation, and crude oil will temporarily experience a decline in demand. The vaccine by Pfizer will also be available worldwide after several months of approval.The demand for fuel showed a 22.5% fall for a week’s average.

The US is also experiencing a huge number of rising coronavirus cases that have touched 6.9 million citizens. Strict lockdown guidelines and border management all over the world may negatively affect the demand for crude oil.

Crude oil rates were bullish and touched the $41.50 resistance level and have a new aim of $43.80.