By Babajide Okeowo
With the hope of effective COVID-19 vaccines looming large, crude oil prices showed remarkable resilience at the close of Thursday’s trading session in London.
Brent Crude traded at $50.16 per barrel indicating a gain of over 2%, while the West Texas Intermediate, WTI Futures traded at $46.96 per barrel.
With the global Brent crude benchmark hovering above $50 for the first time in nine months, experts are optimistic of the progress toward a COVID-19 vaccine that may enable a return to economic normality next year.
“The crude oil market is looking beyond the numbers. The market held key support and is now focusing on vaccine distribution that could lead to a spike in demand that should drive global supply back below normal levels next year” Phil Flynn, a senior market analyst at The Price Futures Group said.
Similarly, Stephen Innes, chief global markets strategist at Axi believes that hopes of an effective vaccine are driving positive reactions.
“There is enough positive vaccine feeling to keep the market in check,” he said in a note.