Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Crude Oil Prices Hit Fresh Highs on Optimism Over 2021

Commodities Nov 24, 2020 11:22AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Geoffrey Smith 

Investing.com -- Crude oil prices soared to their highest since March on Tuesday, as optimism over the economic outlook for 2021 strengthened. 

By 11:30 AM ET (1630 GMT), U.S. Crude futures were up 46% at $45.04 a barrel, while the international benchmark Brent was up 3.8% at $47.77 barrel. 

U.S. Gasoline RBOB futures were likewise sharply higher, rising 4.8% to $1.2623 a gallon, their highest since early September.

On a day of little industry-specific news, oil and other industrial commodities ripped higher as investors bought ever more aggressively into the notion that the distribution of vaccines to fight Covid-19 will lead to a vigorous snapback in growth next year. Three companies have so far declared that their experimental drugs have success rates of 90% or more in preventing the disease. None, however, has official regulatory approval from any jurisdiction yet.

The enthusiasm was reinforced by the sight of the political fog lifting over Washington, with President Donald Trump all-but conceding the election to Joe Biden in the wake of Michigan's certification of its results on Monday. Biden has reportedly named former Federal Reserve Chair Janet Yellen as his pick for Treasury Secretary, which has encouraged hope in a broadly expansionary fiscal policy next year. Those hopes overlook the fact that the Senate is still likely to remain in Republican hands, complicating any efforts to get major fiscal expansion passed.

Signs from the industry itself still appear mixed: Royal Dutch Shell (LON:RDSa) and Total both announced the closure of big refineries on Tuesday, one in Louisiana, the other in France, in a reflection of the collapse in refining margins in recent months. 

The market was also encouraged by what it chose to take as hints of further cooperation between Russia and Saudi Arabia in keeping excess supply off world markets for the coming months. President Vladimir Putin held a telephone call with Crown Prince Mohammed bin Salman earlier Tuesday. The Kremlin's summary of the conversation nodded to what it called their "effective" coordination of oil supplies this year, strengthening expectations that the planned increase in production by the so-called OPEC+ bloc will be pushed back for perhaps as much as three months to the start of April  Newswires reported Saudi and Russian officials downplaying suggestions of coordination ahead of next week's ministerial meeting, at which any such decisions will be taken.

At 4:30 PM ET, the American Petroleum Institute will release its weekly estimate of U.S. crude and product stockpiles.

Crude Oil Prices Hit Fresh Highs on Optimism Over 2021
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email