Jakarta, CNBC Indonesia – The world crude oil price has shot up this week and is getting closer to the level of US $ 45 / barrel.
This week, the price of Brent crude rose 5.1% point-to-point to the level of US $ 44.96. In the same period, the light sweet type jumped 5.71% to US $ 42.42.
Oil prices rose again this week as the market responded to positive news related to the corona virus vaccine (Covid-19), in which the news has been going on for the last 2 weeks. These vaccines are vaccines made by Pfizer with BioNTech and vaccines made by Moderna.
Earlier last week, vaccines made by Pfizer and BioNTech were claimed to be successful in their final clinical trials by more than 90 percent. The good news is, this week, the percentage of successful vaccines makes antibodies in adults increased by up to 95%.
Apart from the Pfizer vaccine, Moderna also claims the same as the final stage clinical trial success of up to 94.5%.
“This is a momentum of improvement in the development of our Covid-19 vaccine candidate. Since early January we have been pursuing this virus as intensely as possible to protect humans around the world as much as possible. Positive analysis of the phase III study provides early clinical validation that a vaccine can prevent Covid-19 , “said Moderna CEO Stephane Bancel.
In August 2020, Moderna said it was selling the vaccine at a price of US $ 32-US $ 37 per dose to a number of buyers. However, if you sell in large quantities, the price can be much cheaper.
At the end of this year, Moderna said it was ready to send around 20 million doses of vaccine to the US. Then next year, 500 million to 1 billion doses of vaccine will be distributed globally.
The market responded to this good news and the oil price which had previously collapsed crept upward. Even on a month to date basis, the contract price for oil has shot double digits by more than 15%.
Actually, the road to get the Covid-19 vaccine is still fairly long because that’s just the initial analysis. Moreover, the number of cases of infection continues to increase every day.
Daily cases of Covid-19 infection in the US are estimated to reach 200,000. This is a negative sentiment for the energy market, especially oil. When the market is threatened with a decline in demand, supply has the potential for a surplus.
Quoting Reuters, Libya’s oil output has now increased by 1.25 million barrels per day (bpd). Libya will continue to boost its oil output and will not enter into an agreement to regulate output before its capacity reaches 1.7 million bpd.
The increase in Libyan oil output is an alarm for the organization of the oil exporting countries and their allies (OPEC +). The cartels are said to be postponing their plans to increase output by 2 million bpd, which should start in January.
United Arab Emirates (UAE) Energy Minister Suhail al-Mazrouei said his country had always been a committed OPEC member and had demonstrated this commitment through its adherence to the ongoing OPEC + supply reduction agreement.
The minister’s comments were in response to media reports that the UAE had questioned the merits of being in OPEC and even considered whether to leave the oil-producing group.
CNBC INDONESIA RESEARCH TEAM
(chd / chd)