- WTI is up by 4%+ following the announcement of progress by Modera on a COVID-19 vaccine
- Oil rallied as Moderna announced that its vaccine is 94.5% effective
- Chinese crude consumption matches record at 14.14 MMBbl/d
- In a preliminary analysis of a large late-stage clinical trial, Moderna’s vaccine was shown to be 94.5% effective
- The trial results showed that the vaccine prevented nearly all symptomatic cases of COVID-19, preventing the most severe COVID-19 infections compared to those who received the placebo
- AEGIS notes that the vaccine news will increase sentiment in markets; However, we are still several months away from the vaccine having a material impact on actual demand. Crude saw a similar rally last week following the announcement of the effectiveness of the vaccine created by Pfizer and BioNTech
- China’s oil processing rebounded in October to match its record set in 2012
- Holiday sales and a recovering economy helped push refinery inputs higher as the country has shown a massive increase in fuels demand
- The refining increase has led to the first monthly drop in Chinese stockpiles since the pandemic began
- Natural gas prices turned lower Monday after weather models shifted warmer over the weekend
- The forecast showed a warmer Midwest with a cooler Texas to West in 11-15 day shifts, amounting to a loss of 13.2 HDDs (CWG)
- The December contract is now trading at its lowest point since early August
- Higher gas production in the Northeast and Haynesville is also weighing on price. Increases in the two gas plays push total Lower 48 gas production to 90 Bcf/d, according to PointLogic
- Pipeline measurements of production show Northeast production back above 34 Bcf/d, close to the all-time record observed a few weeks ago
- Production in the Haynesville has climbed to about 7.5 Bcf/d, up from the 7 Bcf/d low set a few months ago
