By Adam Claringbull
Investing.com – Oil was up on Tuesday morning in Asia as multiple vaccine makers delivered positive information on their progress. Moderna Inc (NASDAQ:MRNA) has released information about its candidate mRNA-1273, which has both a greater efficacy and better storage conditions than the Pfizer Inc (NYSE:PFE) and BioNTech (F:22UAy) product BNT162b, giving rise to optimism about the end of the COVID-19 pandemic.
Brent oil futures rose 0.25% to $44.09 by 11:08 PM ET (03:08 AM GMT) and WTI futures jumped 0.60% to $41.59.
Oil continues its rise on more vaccine news, with investors pinning their hopes on a rise in demand in the coming year. The energy sector has leapt over 23% in the last week on the back of information regarding efficacy and storage data released by major vaccine makers.
Over the last week, Pzifer/BioNTech, Moderna, CureVac NV (NASDAQ:CVAC), Sanofi SA (PA:SASY)/GlaxoSmithKline (LON:GSK), and Johnson & Johnson (NYSE:JNJ) have all released some details of the status of their COVID-19 vaccines. Moderna’s candidate has both a better efficacy rate than the Pfizer/BioNtech version (94.5% vs 90%) and far greater ease of storage and transport, with required temperatures reportedly approximating those of a standard medical or home refrigerator.
"If we judge economic recovery, particularly through the lens of oil markets ... with multiple high efficacy vaccines in the pipeline, there is good chance mobility will return close to pre-pandemic levels later in 2021," Stephen Innes, chief global markets strategist at Axi, said in a note.
Adding to the bullish sentiment are the expectations that the Organization of Petroleum Exporting Countries and their allies (OPEC+) will extend their current supply cuts for a minimum of three months. OPEC+ is due to hold a Joint Ministerial Monitoring Committee later in the day as a prelude to its full meeting, the 180th Meeting of the OPEC Conference on Nov. 30 and the 12th OPEC and non-OPEC Ministerial Meeting on Dec. 1The body's Joint Technical Committee met on Monday.
Creating even further support for prices is the latest demand news from China. October has seen the country’s highest-ever level of crude throughput, showing a rapid recovery in the Asian powerhouse’s economy.
"Oil demand in China is exceeding pre-COVID-19 levels which suggests oil demand is not permanently impaired," analysts from Bernstein Energy said. "This is in line with mobility data and supports the view that oil demand has not been structurally damaged by changes in behaviour post COVID-19 for countries which emerged successfully from COVID-19."
Investors now await crude oil supply data from the American Petroleum Institute, due later in the day.