US crude rose 11% to $ 41.22 a barrel due to a slight drop ahead of Pfizer’s announcement that its coronavirus vaccine was more effective than optimists had hoped. Oil is on track for its best day since the start of May.
News about better-than-expected vaccines is particularly important for the oil industry because the pandemic has caused an unprecedented drop in demand for jet fuel and gasoline.
With the Covid-19 infection spike in the United States and Europe, investors are concerned that new health restrictions will affect economic growth and thus demand for oil and blood vessels. of the global economy.
“Oil is going up like crazy, combining a potential vaccine and a recovery in global demand,” said Matt Smith, director of commodity research at ClipperData.
Brent crude oil, the world standard, increased nearly 9% to 42.80 USD / barrel.
Pfizer (PFE) Chief Executive Albert Bourla told CNN’s Dr Sanjay Gupta on Monday that there will be more than 1 billion doses of the vaccine next year.
Importantly, Pfizer says its vaccine is 90% more effective in preventing Covid-19. For context, the flu vaccine is only 40% to 60% effective. Some analysts have predicted that the coronavirus vaccine will be only 50% effective.
“It’s a great day for science. It’s a great day for humanity when you realize that your vaccines are 90% effective. It’s overwhelming,” Bourla told CNBC on Monday. .
For the oil industry, vaccines would be a huge positive. A sharp drop last spring closes helped prices crash, with US crude prices rising negative for the first time. Oil prices recovered only after OPEC and Russia responded with record production cuts.
However, vaccine developments could remove the pressure on Congress that is fragmented to provide aid to the US economy, which is slowing after a rapidly recovering summer.