Crude Oil Price Surges Past $52 As FDA Gives Nod to Moderna Vaccine

Summary:

Crude oil price on the WTI and Brent crude benchmarks head for the 7 straight week of gains as the US FDA approves Moderna's vaccine for use.

Crude oil price continues its ascent beyond $50 on the Brent crude benchmark, after the FDA committee in charge of vaccine approvals gave its nod to the Moderna coronavirus vaccine candidate late Thursday. This paves the way for the addition of another arsenal to the fight to cage the coronavirus pandemic, which is expected to allow crude oil demand to recover in 2021.

This outlook has sent crude oil prices higher for the 7th straight week, with Brent crude now trading at $52.10. US Vice President Mike Pence says that final approval for the Moderna vaccine is expected later on Friday.

Technical Outlook for Crude Oil Price

Following the confirmation of the breakout of the symmetrical triangle on the daily chart for Brent crude, the price has marched northward and has the resistance at 52.67 firmly on its sights in the near-term. 57.47 is another upside target.

On the flip side, rejection at 52.67 could allow sellers to initiate a pullback to 50.64. Only a drop below this level invalidates the upside move, and opens the door towards 48.33 and possibly 46.41 in the near-term.