Crude oil futures closed in the plus overnight (December 8) following news that the Pfizer vaccine may offer protection against the virus after all. This has calmed the concerns of market participants for the time being.
- WTI crude futures were up 31 cents, or 0.4%, at $72.36 a barrel.
- Brent crude oil contract was up 38 cents, or 0.5%, at $75.82 a barrel.
The flood of news last night confused some market participants when news agency Reuters first published that the Pfizer vaccine only partially protects against Omicron, but almost exactly 30min later there was a report that 3 vaccinations are expected to neutralize the virus. This apparently raised hopes that a renewed closure of the world economy is unrealistic.
The company will be able to develop and sell a special type of vaccine that can resist the Omicron strain by March 2022.
Meanwhile, the EIA reported a decline in U.S. crude oil inventories of only 240,000 barrels for last week. This was less than the expected decline of 1.7 million barrels.
The markets continue to monitor negotiations between Iran and the West on a nuclear agreement. Meanwhile, Germany is calling on Iran to make a realistic proposal for negotiations on a nuclear program.
The Spot Market is Open
Thursday, December 9, 2021