Oil prices are edging slightly higher today on very light holiday trading volume, but the question is: have prices risen too far too fast?
Earlier this month both China and Russia reported that they have developed a Covid-19 vaccine that has been clouded by doubt throughout the world since Phase III testing had not been performed. The vaccines have been developed by CanSino Biologic from China and the Gamaleya Institute in Moscow and are a modification of adenovirus type 5 (AD5). AD5 is currently being used to treat the common cold, and scientists and researchers are now concerned with the effectiveness of the vaccine.
With the global COVID-19 case count reaching 20 million, Russia has approved a vaccine for the disease. There is, however, suspicion around the approval since the trials have yet to conclude the Phase 3 testing. To solidify the vaccine approval, Russian President Vladimir Putin, stated the vaccine is working “effectively enough”- far too vague for most medical professionals throughout the world. What does “effectively enough” constitute? With the vaccination trials being rushed already through the world, how many corners are being cut by the nations at the head of the vaccination development? Like many questions that hint toward political gains and propaganda, we may never truly know the answer to how many corners are being cut on a vaccination approval that could indeed affect the entire globe for better or worse.
The United States has joined the United Nations and Libyan government’s investigation into the potential brokering of an unlawful sale of Libyan oil by General Khalifa Haftar. The rebel general reportedly traveled to Venezuela to discuss oil contracts to raise money for his Libyan National Army (LNA) through the sale of crude oil. Libya’s National Oil Corporation (NOC) is the only legal entity allowed to market Libyan crude as a result of sanctions given by the United Nations during the country’s civil war.
OPEC+ came to an agreement earlier this month to institute record-breaking production cuts of nearly 10 million barrels per day. The production cuts were set to take effect on May 1st, but some members have taken it upon themselves to start earlier. Kuwait and Saudi Arabia have both made the decision to start scaling back production to work towards the production cut goal. Saudi Arabia has scaled back production from 12 million barrels per day(bpd) over the weekend to reach its goal of 8.5 million bpd. Kuwait is OPEC’s fourth largest producer and they have also made the decision to start the cuts early. Kuwait’s Oil Minister Khaled Al-Fadhel said that starting the cuts early was because they felt a responsibility to address the market conditions.