On Monday, oil prices hit the two-month high, supported by the positive early results on a potential vaccine for coronavirus, optimistic views on the resuming economic activities around the world, and signs of oil producers’ commitment over the output cut pact.
Brent crude oil futures for July delivery soared by 7.1% or USD2.31 to USD34.8/barrel while the US WTI crude oil futures skyrocketed by 8.1% or USD2.39 to USD31.82/barrel. Both levels were the highest since March 11, a few days after the original oil supply cut pact between OPEC and Russia fell apart.
The July WTI contract closed with a gain of 7.2% to USD31.65/barrel. It was traded more actively, outpacing the front-month for several days now.
The development of the coronavirus vaccine showed early positive results as Moderna Inc.’s vaccine showed that it produced protective antibodies in some healthy volunteers. The vaccine is the first being tested in the US.
Also in the US, business and social life are gradually being opened. More Americans are halting their lockdowns and the stock markets flourished on the early result of the vaccine.
In Italy, shops and restaurants started to reopen on Monday. Other centers of the outbreak, including Spain and Portugal, will slowly lift restrictions ahead of summer.
Meanwhile, the new OPEC+ oil output cuts pact has been showing the result. In the first two weeks of May, the group has slashed oil exports sharply, along with its commitment of a record 9.7 million bpd.
