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A continued pick-up in economic activity in China is likely to keep sentiment positive as Crude Oil prices extended recent gains amid hopes of a viable vaccine for COVID-19, strategists at ANZ Bank brief.

Key quotes

“A Bloomberg report sighting officials in China’s energy industry said that demand was almost back above pre-COVID-19 levels. At 13mbd, it was just shy of the 13.7mb/d level that was recorded in December 2019.” 

“Sentiment was supported by new successful trials of Moderna’s experimental vaccine, which should show signs of creating an immune-system response to fend off the new coronavirus.”

“The number of US shale oil rigs operating fell to a decade long low, while Russia pledged strict compliance with the OPEC+ supply agreement.”