U.S. Election Impasse Eased, Oil Prices Hit A New High In March!

With the progress of the new vaccine, the U.S. presidential power transfer process was officially launched to alleviate market uncertainty. Supply risks from the attack on Saudi refineries are also a reminder to the market. U.S. WTI crude oil futures rose $1.85, or 4.29%, to $44.91/barrel, after hitting a high of $45.20/barrel, the highest level since March; Brent crude oil February futures rose $1.80, or 3.91%, to $47.86/barrel.

In the near future, it can be said that the breakthrough in the progress of the new crown vaccine has laid a foundation for the economic market this year. At the same time, more positive news has also been heard recently, which spurred oil prices to open up upward space. The first batch of Americans could be vaccinated as early as December 11, according to muncerf shriy, head of the new coronavirus vaccine research and development working group in the United States, CNN reported on the 22nd. Although the agency expects a large number of vaccines to be launched on the global market, it will still take six months. However, a small part of the new coronal vaccine will be launched ahead of schedule, which will stabilize the market "morale" to a certain extent.

At the same time, the deadlock in the US election eased, and the risk preference sentiment in the economic market increased. US stocks rose on Tuesday, with the Dow up 1.54%, the S & P 500 up 1.62%, and the NASDAQ up 1.31%. The Dow broke the 30000 mark for the first time. Thanks to the sharp rise in the stock market and the rise in oil prices, the U.S. oil rose nearly 5% to a new high of $45.20/barrel since March 6. Due to the surge in confirmed cases of the new crown outbreak and market restrictive measures taken in some regions, IATA lowered its forecast for the aviation industry. Jim Kramer, a US financial guru, said on Tuesday that some of the market's stock gains were "Crazy" and did not seem to take into account market fundamentals or the state of the new crown epidemic. Kramer questioned how this stock buying would continue and pointed out that in the past, such speculation was often heavily sold off. Stimulate crude oil to fall in the end.

According to us CNBC website reported on the 23rd, US General Administration administration director general Murphy informed president elect Biden and his team that they were ready to start the process of regime transition, and that more than 7 million US dollars would be distributed to Biden as transitional funds. According to ABC local time on November 24, the office of the director of national intelligence (ODNI) said the White House approved the daily presidential briefing to Biden's team as part of supporting the transition. According to the "Capitol Hill" news, a White House official confirmed that trump signed the "sharing briefing" agreement.

Although the energy supply of Saudi Arabia's oil facilities has not been affected after the attack, it has alerted the market of supply risks and stimulated the oil price to go up. The Saudi led Yemeni coalition forces said that the husai armed forces were related to the oil products distribution station fire, and the "terrorist attack" was not aimed at Saudi Arabia, but at global energy security. At present, the facilities under attack are under repair, and other surrounding facilities are operating normally, the person in charge of the oil facilities disclosed on the 24th. The head of the oil facility, Abdallah gamidi, said that the target of the attack was an oil storage tank with a reserve of 25000 barrels, and a two meter square hole was blasted on the top. Firefighters quickly took action to put out the fire after the explosion started. No casualties were caused. At present, engineers are repairing the oil tank, but the time required for repair is uncertain. At the same time, Abdallah also revealed that there are more than 30 similar storage tanks in the area where the oil tanks were attacked, which are responsible for providing energy for several provinces in western Saudi Arabia, and the energy supply in the region has not been affected.

In addition, there are two news to stimulate oil prices. Eni group, an Italian oil company, said that "explosive devices" damaged two oil pipelines in Bayelsa, Nigeria. Another source said Royal Dutch Shell's content refinery in Louisiana will be closed next week.

China is the lifeblood of the global oil market this year, according to an article published by Reuters. In recent weeks, while the new coronavirus has continued to spread, other countries have been reducing their oil orders, while China has increased the amount of oil purchased from Russia, the United States and Angola. China is the only buyer of global demand growth this year, with the outbreak affecting global oil consumption, Reuters reported on the 19th. China's oil imports are expected to reach 12 million barrels a day next year (2021). China is expected to become the only country in the world with year-on-year oil demand growth, the International Energy Agency (IEA) said recently.

Recent oil price (CFI) and other factors, such as oil price fluctuation, oil price fluctuation in April, etc., have led to negative oil supply and demand of the US futures market.