Stimulus Talks Resume As Vaccines Roll Out
December 15, 2020
Yesterday saw the first Americans getting the Covid vaccine and traders continue to see this as a means to restore energy demand so energy prices were higher in yesterday’s trading. Wall Street is also seeing the vaccine news as a positive and adding support to the equities markets.
Energy markets got a bit concerned yesterday when news came out that an explosive leaden boat hit a tanker at the Saudi port of Jeddah. But no major damage was done, and no production was impacted. The number of these types of incidents have been on the rise in recent weeks but so far there has been no major impact, so the market brushes them off and continues to look forward.
Stimulus talks are again getting news and a new pan could come out soon and that is also supporting energy markets.
The week of Christmas traditionally is a light volume trading week which can allow for some added volatility because of the limited numbers of traders and the volume traded. I would expect that next week will see some of this trading.
The US dollar index traded lower yesterday which is also support to energy prices. The dollar index has been holding a key support level but could have more room to test lower which would allow energy price to see more upside.