After the oil market prices reached a record-breaking low this year, things began to look up for the gas and oil industry’s future. At the beginning of November 2020, oil received its biggest daily gain in more than five months of an 8% surge after Pfizer, one of the world’s premier biopharmaceutical companies, announced promising results regarding a potential COVID-19 vaccine.
Adam Ferrari, CEO and founder of Ferrari Energy, said that the positive news surrounding the coronavirus vaccine gave hope to traders that next year holds evidence for a condensed pandemic, resulting in boosted demand with social norms returning.
When the pandemic affected life worldwide, it drastically hit the transportation sector, impacting the oil and gas industry, as eighty percent of crude oil barrels go toward fuel for transportation. The good news about a potential coronavirus vaccine means societal adjustments back to pre-pandemic norms and more use of transportation, justifying oil’s particular reaction to the announcement.
Tracking the fluctuation of the oil and gas industry during the pandemic reflects how heavily the oil demand depended on the status of COVID-19 cases. However, the drop in oil prices did not independently rely on resurgences of coronavirus numbers. Poor refining margins, the resumption of United States oil production, and the remaining high inventories also contributed to the market price drop in oil.
A week after Pfizer and BioNTech revealed a coronavirus vaccine with ninety percent efficacy, Moderna announced its COVID-19 vaccine. Moderna’s vaccine proved ninety-four point five percent effective against COVID-19, which skyrocketed oil prices by ten percent.
Moderna brought awareness to their vaccine after the Phase 3 study of its vaccine tested met statistical criteria with its high efficacy percentage. The Phase 3 study had over thirty thousand participants in the United States enrolled to participate. The next step for Moderna consists of filing with the U.S. Food and Drug Administration (FDA) for an Emergency Use Authorization (EUA) and seeking authorizations from global regulatory agencies through application submissions.
Another proactive sign for the gas and oil industry came with Joe Biden’s COVID advisory team’s statement that the last resort response against coronavirus case outbreaks would be a national lockdown in the United States. The knowledge gives another streak of hope for those in the gas and oil industry with the reality that the economy and oil demand will not be hit as severely in the future as it was during this past spring’s lockdown.
About Adam Ferrari
Adam Ferrari was born and raised in the south suburbs of Chicago, IL. He is the grandson of an Italian immigrant coal miner who worked in the mines of Coal City, IL. Through the successes at Ferrari Energy, the company has given back to various organizations in the greater Denver and Chicago regions, which are both cities that he has taken residence in and maintains strong ties to. Under his leadership, Ferrari Energy actively made annual donations to a variety of non-profit organizations, including St. Jude Children’s Hospital, Freedom Service Dogs, Denver Rescue Mission, Coats for Colorado, and Next Steps of Chicago. Ferrari Energy encourages all who are able to find ways to make a difference in the lives of those who are less fortunate.