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Monday, February 8, 2021

DTN Oil Oil Futures Rally to Fresh 1-Year Highs on Demand Outlook - DTN The Progressive Farmer

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As of Sunday afternoon, Centers for Disease Control and Prevention report 36.1 million vaccines to protect against the coronavirus have been administered in the United States while the total number of cases reached 26.8 million. The accelerating rate of inoculations was joined by news last week that Johnson and Johnson submitted Emergency Use Authorization to produce its COVID-19 vaccine, which is to be considered for approval by the Federal Drug Administration on Feb. 26.

J&J's vaccine would be the third approved in the United States, adding to vaccines from Pfizer and BioNTech and Moderna currently being distributed, with the J&J vaccine needing a single dose and able to be stored at typical refrigeration temperatures. Vaccines from Pfizer and BioNTech and Moderna require a two-dose regimen and need to be stored at very low temperatures.

An improving posture against the pandemic is realized as an extra one million barrels per day (bpd) in production cuts by Saudi Arabia for this month and March in addition to 7.2 million bpd in output cuts by the Organization of the Petroleum Exporting Countries, Russia and nine additional non-OPEC producers tightens available global supply. Both the Brent and WTI forward curves are in backwardation, a market structure signaling buyers are willing to pay a premium for barrels now, while diminishing the incentive to buy oil for storage.

Oil futures continue to look past Friday's nonfarm payroll report showing a modest 49,000 increase in new jobs in the United States in January and downward revisions for the previous two months totaling 159,000. However, proponents in Washington wanting to push more stimulus through Congress seized on the report, as Senate and House Democrats took procedural votes that will allow them to pass the Biden administration's $1.9 trillion stimulus effort without Republican support.

In Europe, industrial production in Germany was flat in December 2020 from an upwardly revised 1.5% in November, while down 0.7% against year ago, suggesting the reinstitution of government lockdowns late last year to contain the coronavirus slowed economic activity in the continent's largest economy.

Brian L. Milne can be reached at brian.milne@dtn.com

The Link Lonk


February 08, 2021 at 08:25PM
https://www.dtnpf.com/agriculture/web/ag/news/article/2021/02/08/oil-futures-rally-fresh-1-year-highs

DTN Oil Oil Futures Rally to Fresh 1-Year Highs on Demand Outlook - DTN The Progressive Farmer

https://news.google.com/search?q=fresh&hl=en-US&gl=US&ceid=US:en

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