Following positive reports regarding the development of coronavirus vaccine candidates by the likes of Pfizer and Moderna, oil stocks have risen to their highest levels since early September. Futures, in particular, enjoyed a significant rise of 2.5% on Wednesday.
The surge in share prices mostly came as a result of Pfizer’s announcement that during a final analysis of its clinical trial data, its COVID-19 vaccine proved to be 95% effective.
On the other hand, gains were limited by an influx of new pandemic restrictions throughout the United States and Europe. In addition, the increase in futures prices was halted as it was revealed that New York City would be shutting down in-person schools.
According to Again Capital LLC partner John Kilduff, oil prices have also been affected by other factors unrelated to the coronavirus pandemic: “The time period between Thanksgiving and New Year’s can rival summer driving demand at times,” he pointed out.
He did, however, also concede that reactions by various governments to the rise in coronavirus cases may offset the typical seasonal demand.
