Pfizer Vaccine News Raises Optimism
November 9, 2020
The Baker Hughes Rig Count said that crude oil rigs were up five to a total of 262 rigs. Last year at this time total rigs were at 684 a difference of 458 rigs. The rig count has been inching up slightly the last eight weeks as producers appear to be bringing some rigs back online. Production is down off the highs and many thought it would decline more but that has not really materialized just yet. There could be some producers getting wells back as crude price have been around $40 dollars per barrel, still others have speculated the producers are getting wells up and going now as best they can prior to what may be more regulations in a Biden White House. There are analysts out there that still see a production decline coming so we will continue to keep a watch on rigs and production numbers.
Nothing else matters at this point today as news from Pfizer just out early this morning says their vaccine is 90+ % effective. The DOW surged when the news hit and with it all other markets. Crude oil is currently up $3.60, RBOB $0.0930 and ULSD $0.080. The market is taking a very optimistic look at this and much of the pent up energy is being released in the markets. This is the news of the day and will get a lot of press and attention.
The uncertainty around the election is gaining some clarity and also easing some tension and unleashing buying in the market also. At this point who knows if the market can sustain this rally but right now the buyers are out and this will be the main focus for today.