Crude Oil price climbed up, at London’s trading session on Tuesday, going above the $43.55 price levels as some oil traders remained hopeful that the worse is over with the positive news of the development of vaccines by drugmakers, despite the concern of new restrictions due to a surging number of COVID-19 cases.
Brent crude futures gained 1.46%, at trade at $43.91 by 9.45 am GMT, while West Texas Intermediate (WTI) rose 0.91% to trade at $41.81.
The closing price bandwidth of these international oil benchmarks have traded within a $2 channel so far this month.
Just recently the world’s second-largest economy, China reopened some of its cinemas after a six-month closure, raising hope among crude oil traders that a recovery from the pandemic is in place, especially on the basis of the outbreak first started there.
Stephen Innes, Chief Global Market Strategist at AxiCorp in a note to Nairametrics, explained the impact of the rampaging virus on the world’s largest consumer of oil. He said;
“Two things stand out, though. Firstly, although there has been a moderation in US mobility, it has not, on the whole, fallen off a cliff.
“However, in light of the surge in Covid-19 case counts in the US, this could either be taken positively in terms of impact on the economy or negatively in that the US could struggle to get a handle on virus outbreaks.”
Early data from trials of COVID-19 vaccines released yesterday, boosted confidence that a COVID-19 vaccine may be created, however bringing it to the drug market will take some time to reach the world’s billions in dire need of the vaccine.