Commodity Market: US Crude Oil rises 1% as coronavirus vaccine roll-out fuels demand optimism

Futures on US West Texas Intermediate Crude Oil surged 1% on Thursday, as optimism over a faster oil demand recovery following COVID-19 vaccine roll-out outweighed a sharp increase in US crude oil stocks.

COVID-19 vaccinations were initiated in the UK this week and are about to begin during the upcoming weekend in the US.

WTI Futures rose even after the latest report by the US Energy Information Administration revealed the biggest increase in crude oil inventories since a record in April. US crude oil stocks increased by 15.189 million barrels during the week ended December 4th, while a consensus of analyst estimates had pointed to a drop by 1.424 million barrels.

“The latest set of data has exceeded any bearish expectations,” Tamas Varga of oil broker PVM was quoted as saying by Reuters.

“The stubbornness of oil bulls and their confidence in the positive economic impact of the vaccine roll-out are truly remarkable.”

Additional support to oil prices came after reports of an attack on one oilfield in Iraq, where two wells were set on fire by explosives yesterday. Yet, overall production at the site remained unaffected.

As of 10:47 GMT on Thursday WTI Crude Oil Futures were gaining 1.03% to trade at $45.99 per barrel, while moving within a daily range of $45.52-$46.00 per barrel. WTI Crude Oil Futures have risen 1.43% so far in December, following another 26.68% surge in November, the biggest since May.

Brent Oil Futures were gaining 0.86% on the day to trade at $49.44 per barrel, while moving within a daily range of $48.88-$49.54 per barrel. Brent Oil Futures have risen 3.99% so far in December, following another 25.83% surge in November, or the biggest since May.

Daily Pivot Levels (traditional method of calculation) – WTI Crude Oil Futures

Central Pivot – $45.57
R1 – $46.19
R2 – $46.86
R3 – $47.48
R4 – $48.10

S1 – $44.90
S2 – $44.28
S3 – $43.61
S4 – $42.94

Daily Pivot Levels (traditional method of calculation) – Brent Oil Futures

Central Pivot – $48.99
R1 – $49.55
R2 – $50.09
R3 – $50.65
R4 – $51.22

S1 – $48.45
S2 – $47.89
S3 – $47.35
S4 – $46.82