Oil Forecasters Gloom Eclipsed by Vaccine… WSJ

November 13, 2020 by Jim Colburn Leave a Comment

Jinjoo Lee, Wall Street Journal, has an excellent piece explaining recent developments in oil markets…

”Pessimistic forecasts and news of rising Covid-19 cases seem to have taken a back seat in investors’ minds to Monday’s announcement from Pfizer and BioNTech that indicated higher-than-expected efficacy for their vaccine candidate. Though the oil-price rally itself might not be rational—after all, near-term demand remains challenged—optimism about a rebound in 2021 isn’t unreasonable. The vaccine announcement suggests that the world could escape the pandemic sooner and more fully than expected, with the first doses potentially becoming available this year…”

“Not for the first time, though, oil traders seem to be several steps ahead of forecasters.”

There is more here…

Commodity Research Group (CRG), founded by veteran analyst Edward Meir, is an independent research consultancy specializing in base and precious metals, as well energy products. The Group provides research and general price analysis for these markets, along with advice to companies seeking to construct commodity hedging strategies.

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