Approaching August highs

Brent and WTI have continued their ascent and have risen to close to their August highs, above which we have also not been to since March.

• The news of the AstraZeneca / Oxford vaccine being successful has helped to propel Brent to levels not seen since Covid-19 started spreading more widely across Europe and a number of European countries began entering into lockdowns.
• The AZ/Oxford vaccine is seen as a game changer in two ways: first, it will increase the number of vaccines available and the speed of production so will enable the rich world to get vaccinated quicker than if only relying on the Pfizer, Moderna (and possibly Sputnik) vaccines. Second, it will be priced at a much lower level and is likely to be more widely available (eventually) so could help the less developed world be vaccinated.
• Elsewhere, Bloomberg has reported that Iraq is seeking upfront payments in exchange for long-term oil supply contracts in order to help prop up its fiscal position. The Saudi Press Agency has also confirmed that Houthi rebels attacked an oil facility in Jeddah causing a fire inside a fuel-distribution centre.
• In terms of price action, our technical analyst notes that Brent cleared the $45.30 bull trigger yesterday which confirms a resumption of the recent recovery and paves a way towards the key resistance at $47.27/31, the August 26/5 highs.