Monday, November 23, 2020, saw a surge in oil prices, over 1%. The recovery comes as the vaccine test for coronavirus gains strength.
Brent crude oil climbed 74 cents, 1.6%, and West Texas Intermediate crude surged 55 cents, 1.3%. Contango, shrank to 32 U.S. cents, the lowest level since June 15th.
Demand is expected to increase as the vaccine for the virus makes headway. According to an unnamed U.S. official, once the regulative approval is gained, the first injections will be tried.
On the other hand, AstraZeneca, the British – Swedish pharmaceutical company, said the vaccine, which has been discovered with some assistance from the University of Oxford, might gain some 90% success.
Stephen Brennock, Oil Analyst at PVM Oil Associates, said investors have unheeded recent news and are waiting for the coming summer, however.