Crude oil price soars as traders remain hopeful

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 drug makers.

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 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.