Futures on US West Texas Intermediate Crude Oil extended gains from the prior trading day and hit a fresh 4 1/2-month high on Tuesday, as positive news regarding COVID-19 vaccine trials and an EU deal on a EUR 750 billion recovery fund lifted prospects for fuel demand.
AstraZeneca and Oxford University said yesterday their novel coronavirus vaccine triggered an immune response in all study participants who had received two doses.
Two more vaccine candidates are currently under development – one by BioNTech in cooperation with Pfizer and another by CanSino Biologics in cooperation with China’s military research unit.
Global risk sentiment received a boost after EU leaders reached a “historic” deal on stimulus plan, while the reopening of some cinemas in China on Monday also raised hopes over economic recovery and lent support to oil markets.
“With major economies opening … demand should pick up for oil, and more so if a vaccine becomes available soon,” Fawad Razaqzada, market analyst at ThinkMarkets, said.
In other news, oil major Chevron Corp announced yesterday that it would acquire Noble Energy Inc in a $5 billion all-stock deal, the first major acquisition within the industry since the pandemic delivered a blow to demand.
As of 9:23 GMT on Tuesday WTI Crude Oil Futures were gaining 2.49% to trade at $41.79 per barrel, after touching an intraday high of $42.00, or a price level not seen since March 6th ($50.42). WTI Crude Futures have risen 3.03% so far this week, after remaining flat in the prior week.
Brent Oil Futures were gaining 2.32% on the day to trade at $44.18 per barrel, after touching an intraday high of $44.48, or a price level not seen since March 6th ($46.37). Brent Oil Futures have gained 2.67% so far this week, after retreating 0.39% in the preceding week.
Daily Pivot Levels (traditional method of calculation) – WTI Crude Oil Futures
Central Pivot – $40.51
R1 – $41.17
R2 – $41.56
R3 – $42.22
R4 – $42.88
S1 – $40.12
S2 – $39.46
S3 – $39.07
S4 – $38.68
Daily Pivot Levels (traditional method of calculation) – Brent Oil Futures
Central Pivot – $42.99
R1 – $43.61
R2 – $44.03
R3 – $44.65
R4 – $45.26
S1 – $42.57
S2 – $41.95
S3 – $41.53
S4 – $41.10
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