Crude oil trading reminder: vaccine research is positive, oil prices maintain a good tone, and it is expected to rise to the 80 mark

At the beginning of the Asian market on Thursday (December 9), U.
S.
oil is now trading at $72.
59 / barrel; Oil prices rose on Wednesday as studies showed existing coronavirus vaccines were effective against new virus variants, allaying fears of plunging fuel demand, while geopolitical tensions and disappointing nuclear talks boosted prices
.

The focus of the day is on the number of initial jobless claims in the United States for the week ended December 4 and the final monthly
rate of US wholesale inventories for October.

There are many factors affecting oil prices

[Preliminary test shows that Pfizer-BioNTech vaccine booster shot can neutralize the variant strain Omicron]

Pfizer and BionTech SE said preliminary experimental studies suggest that a third dose of their coronavirus vaccine may be needed to neutralize the new coronavirus variant Omicron, a result that is expected to accelerate the global pace of booster shots and may lead to the use of new vaccines
against variants.

The researchers found that if only two doses of the vaccine were given, the neutralizing antibodies that prevented Omicron were about 25 times
lower than the original strain.
However, the companies said in a statement that if they receive a booster shot, they can restore protection to a level similar to that after two doses of the vaccine
.

Pfizer and BioNTech said in a statement that trial results showed that two doses of the vaccine "may not be enough" to prevent infection with the Omicron strain
.
This, combined with the effect of stimulating booster shots, may raise the likelihood that
an eventual need for a vaccine specifically for Omicron will be required.
Pfizer said a vaccine specifically targeting omicron could be ready
by March next year.

BioNTech CEO Ugur Sahin said on a conference call that it was clear that in response to omicron, the Pfizer-BioNTech vaccine "should be three doses.
"
He said it may be reasonable to get a booster earlier than currently recommended, and the time could be shortened to three months
after the first two shots.

Mikael Dolsten, Pfizer's chief scientific officer, said in an interview that in the short term, strong antibodies triggered by the third shot of Pfizer's existing vaccine, Comirnaty, may provide good protection in the months leading up to early spring, buying time
to develop new vaccines and determine the best way to advance.
At the same time, unofficial sources still suggest that most patients infected with Omicron are relatively mildly
ill.

PVM Oil Associates analyst Stephen Brennock said cautious optimism that the Omicron variant would hit the global economy and thus energy demand less than initially feared
.

[S&P 500 scores biggest three-day gain this year]

U.
S
.
stocks rose for a third straight day, with the S&P 500 posting its biggest three-day gain this year.
The S&P 500 rose 0.
3%, the Nasdaq 100 rose 0.
4%; Pfizer and BioNTech said preliminary experimental studies showed that their vaccine booster shots could neutralize the Omicron variant of
the new coronavirus.
The news eased market concerns
about the variant.
Art Hogan, chief market strategist at National Securities, said: "Risk assets are recovering this week after a series of turmoil caused by the new strain, and early studies have shown that the vaccine has some protection against
the new strain.
So far, Omicron has not led to a significant increase in hospitalizations, and vaccine developments are encouraging.
"

Airline stocks such as American Airlines, Delta Air Lines and United Airlines, as well as travel stocks, rose, although declines in consumer staples and financials weighed on the broader market and technology stocks were in unclear
direction.
Wall Street analysts expect markets to remain volatile until Omicron's threat to the economy becomes clearer; If the outcome is less threatening, the market focus will shift back to the Fed
.

[Biden said he made clear to Putin the serious cost of invading Ukraine]

US President Joe Biden said he told Russian President Vladimir Putin at a video summit on Tuesday that Russia's invasion of Ukraine would have "serious consequences," including increased U.
S.
deployments
in NATO countries.
"The economic consequences will be unseen, even unprecedented," Biden said
.
"We may also need to strengthen our presence in NATO countries, especially those on the Eastern Front
.
" Biden said he also made it clear that "we will also provide defense capabilities
to the Ukrainians.
" ”

Biden said he hoped to announce plans for a meeting with Russia and "at least four major NATO allies" by Friday to discuss Putin's concerns about NATO and whether some adjustments could be made to reduce tensions
on the Eastern Front.

Putin told reporters in Sochi on Wednesday that the talks were "very open, substantive and constructive.
"
Russia is concerned about the prospect of Ukraine joining NATO, "and we are talking with the assumption that our concerns will be heard, at least this time
.
" He added that the two sides agreed to create an agency to study the issue in detail, and Russia would present its own plan
within a week.

In the event of a Russian invasion of Ukraine, the United States and European allies will consider imposing sanctions, targeting Russia's large banks and the country's ability to convert rubles into dollars and other foreign currencies, according to
people familiar with the matter.
They said the U.
S.
may also limit investors' ability to
buy Russian bonds in the secondary market.

Moreover, the White House and Tehran have resumed negotiations on Iran's nuclear program, but agreement on resuming the 2015 agreement to limit Iran's nuclear development remains a distant matter, and Western officials have expressed disappointment
with Iran's broad demands.

Negative factors affecting oil prices

Cushing crude oil inventories rose by the most since February last week.

U.
S.
crude inventories fell less than expected last week, while production increased and refined product inventories also increased
, according to data released by the U.
S.
Energy Information Administration (EIA) on Wednesday.

U.
S.
crude inventories fell by 240,000 barrels to 432.
9 million barrels
in the week ended Dec.
3.
The decline fell below analysts' expectations of 1.
7 million barrels due to higher imports and another release of the U.
S.
Strategic Petroleum Reserve
.
The U.
S.
strategic oil reserve fell by 1.
5 million barrels
last week.

In addition, U.
S.
production rose to 11.
7 million b/d, the highest level
since the pandemic raged last May.

Increased refining activity drove up
overall inventories of refined products such as gasoline and diesel.
The EIA said refinery refining rose by 154,000 b/d
last week.
Refinery capacity utilisation rose by 1 percentage point to 89.
8%.

U.
S.
gasoline inventories rose by 3.
9 million barrels versus an expected increase of 1.
8 million barrels
.

Distillate inventories, including diesel and heating oil, rose by 2.
7 million barrels versus an expected increase of 1.
6 million barrels
.
Tony Headrick, energy market analyst at CHS Hedging, said: "Refined oil inventories are increasing overall, affecting a slight decline
that far outweighs crude oil inventories.
"

Cushing crude inventories rose last week by 2.
37 million barrels
, according to the U.
S.
Energy Information Administration (EIA).
That's enough to bring the U.
S.
crude delivery center inventory above the important psychological level of 30 million barrels for the first time in seven weeks, with Midwest crude imports jumping to an all-time high of 3.
4 million barrels per day and East Coast inventories falling by more than 1 million barrels last week to their lowest level
since May.

Robert Yawger, head of futures at Mizuho Energy, said: "This is the second largest increase in Cushing's inventory this year
.
At one point, that inventory dropped to fairly low levels
a few weeks ago.
”

[U.
S.
job openings near record high in October]

The number of job openings in the United States jumped to its second-highest level on record in October, highlighting the challenges
employers face in filling vacancies.

The Labor Department's Job Openings and Labor Mobility Survey on Wednesday showed job openings rose to 11 million, after an unexpected upward revision to 10.
6 million the previous month.

The resignition rate fell to 2.
8 per cent
.
The increase in job openings shows that despite higher wages and bonuses, employers are still struggling to fill vacancies
.
As the new strain raises health concerns and affects parenting arrangements, it may take some time for labor supply to catch up with demand levels
.
Data from the Bureau of Labor Statistics showed that 7.
4 million people lost their jobs in the United States in October, far below the number of
open positions.

Job openings increased
in accommodation, food services, manufacturing and educational services.
The South region saw the fastest
growth in vacancies.
Total hiring remained virtually unchanged in October at 6.
5 million, with the hiring rate flat at 4.
4%.

The number of layoffs and layoffs remains near record
lows.
The quit rate fell for
the first time since May.
The number of resignations in the transportation and warehousing, finance and entertainment sectors fell
.

[Australia reports world's first Omicron variant subtype]

Queensland, Australia, reported the world's first case of infection with
the Omicron variant subtype of the new crown variant on the 7th.
Health officials say the subtype is very similar to Omicron, but does not have Omicron's unique "S gene shedding" feature, is difficult to identify by PCR nucleic acid testing, and is more contagious
.

Comprehensive Australian Broadcasting Corporation and the British "Guardian" reported on the 8th, Queensland, Australia reported 2 cases of Omicron infection on the 7th, one case entered from Nigeria, was confirmed to be infected with the Omicron variant after testing, and the other case entered from South Africa, but the measured variant was different from
Omicron.
Queensland's acting chief health officer, Peter Aitken, said the scientific team had found differences between the Omicron variants and reported them to the International Committee
.

Overall, U.
S.
crude oil inventories were less favorable than expected for oil prices, but oil prices were boosted by the good news of vaccine research, and the market's worries about the variant strain Omicron plummeted, and oil prices maintained a good tone; Under the geopolitical tension and the poor progress of the Iranian nuclear negotiations, oil prices are expected to rise again by 80 mark
.

At 8:06 Beijing time, U.
S.
crude oil is now trading at $72.
55 a barrel
.