As Oil Passes $45, It’s 2021 That’s Really Got Traders Excited
- Timespreads along the oil futures curve firm on vaccine hopes
- Analysts more bullish about consumption in second half of 2021
The uncertain timing of a vaccine rollout, and accompanying demand rebound, complicates the picture for Organization of Petroleum Countries and allied producers as they try to avoid a glut of crude from building.
Photographer: Toru Hanai/BloombergThis article is for subscribers only.
The prospect of a coronavirus vaccine has transformed how oil traders are evaluating the market’s prospects for the second half of 2021.
Headline Brent oil futures surged above $45 a barrel on Wednesday, a 15% increase from where they ended last week. But that’s a price for supplies in January, when the direct impact on oil demand from any vaccine is likely to be limited because of the time it would take for an immunization program to be rolled out.