oil

Crude Oil Stays Above Key Support Level, Crude Oil Traders take Long Positions

Just recently an experimental COVID-19 vaccine developed by a leading drug maker AstraZeneca and Oxford University showed results of being safe, producing an immune response to the deadly viral disease in the first phase of its clinical trials.

The hopes that such COVID-19 vaccines could be ready before the end of Q4, 2020 triggered crude oil traders in placing bullish bets on crude oil.

Brent crude futures were gained 1.46%, at trade at $43.91 by 9.45 am GMT, while West Texas Intermediate rose 0.91% to trade at $41.81.

However crude traders remained overlying cautious as the caseloads on COVID-19 reached record highs, with the fact that some fiscal officials placed restrictions in certain global economic hubs, witnessed in regions like Los Angeles, Chicago coupled with OPEC+ plans to go ahead with next month plan to lift some curbs placed on crude oil output.

Consequently, crude oil prices are trading relatively high as bullish market aspirations seem to be capped by growing concerns about COVID-19 impact on the world’s economy and energy demand in particular.

The world’s energy markets do not have the luxury to watch the rampaging virus resurgence disrupt global economic systems, based on the bias that the world’s economy seems to be on a fragile standing, however, positive news coming from the development of COVID-19 vaccines or any soft landing measures by fiscal authorities would keep the price of Brent crude above its strong support price level around $40 in the short term.