Finally, quotes exceeded the closing maximum of August. At the beginning of 2020, oil prices were above $60 per barrel. Then, due to the coronavirus pandemic oil prices collapsed to historic lows. However, in the summer, oil recouped some of its losses, rising to $40 per barrel.
And now, after a long time, the price of WTI crude jumped by 4.3% to trade at $44.91 per barrel. Brent crude rose by 3.9% to settle at $47.86 per barrel, also hitting its highest level since March.
Recently Moderna Inc., Pfizer Inc., BioNTech reported on the effectiveness of COVID-19 vaccines. Amid this news, oil quotes began to advance. Perhaps, mass vaccinations may start soon. This suggests that the global economy will begin to recover faster as restrictions on international travel may be lifted.
In this case, the oil industry will also rebound, as a rise in road trips, air travel and maritime goods transportation are boosting oil demand. Now traders are confident that oil consumption and prices will recover in 2021.
Investors are betting on higher oil prices amid improved demand prospects, according to the latest data from the US Commodity Futures Trading Commission.
Another positive factor is that Joe Biden, the representative of the Democratic Party, won the US presidential election. Besides, Janet Yellen will be appointed to the post of the US Treasury Secretary. Analysts are confident that Yellen will use stimulus measures more actively to restore the economy after the pandemic.
As a result, traders again became interested in risky assets, including stocks, commodities, and foreign exchange instruments.
The largest growth in shares was recorded in oil and gas companies. Thus, in November, the S&P 500 index rose more than 35%, and the shares of Diamondback Energy Inc. and Occidental Petroleum Corp. won back their losses.
Now analysts have a new question: will OPEC + keep the current production restrictions after the recent price hikes? Previously, it was assumed that the group would tighten restrictions in order to maintain prices amid the rising incidence of coronavirus worldwide.
If production restrictions are lifted, oil prices could collapse again, as experts say. There are also concerns about oil demand for the winter period due to quarantine in Europe and an increase in the number of coronavirus cases.
Meanwhile, gold futures on Tuesday fell by 1.8% to $1,804.60 per troy ounce. But today gold is trading at $1,811.12 per troy ounce. It looks like the euphoria in the markets continues as investors sell gold amid optimism about the global economy
