Key points

• Pfizer’s vaccine rhetoric drives up markets
• OPEC + contemplating extended production cuts
• Oil related stocks
• EIA oil storage report on Thursday not Wednesday due to Veterans Day in the U.S.

Oil prices rallied as a result of the news that Pfizer’s vaccine is close to 90% effective in fending off the novel coronavirus. The news echoed across the financial markets, with the share prices of work from home related stocks tumbling, but the stocks for transport related companies including airlines, and automakers, among other sectors, all ticking up. With markets banking on the vaccine coming earlier before the end of the year and the possible end of the pandemic sometime early 2021, Oil is set to remain upbeat.

OPEC + are contemplating extending production cuts into the first quarter of 2021. Current cuts stand at around 7.7 million barrels per day, and this was sufficient to sustain prices between $38 and $40 per barrel. Further cuts will be pivotal in sustaining prices above the key psychological prices of $40 per barrel.

Continental Resources (NYSE: CLR) is set to offer a series of senior notes due in 2031, with proceeds used to pay other expiring notes. The CLR equity stock climbed by approximately 4% during the Monday premarket trading.

First Solar (NASDAQ: FSLR) suffered a double by Raymond James from Outperform to Underperform on the prospect that the Biden administration repeals solar tariffs. First Solar benefits from them as it sells thin-film panels that are not subjected to the tariffs. First Solar’s stock was down nearly 4% in early trading on Tuesday.

Occidental Petroleum (NYSE: OXY) reported its fourth straight quarterly loss, with a net loss of $3.8 billion. The organisation claimed that it would add four additional oil rigs back to the Permian basin. 

Prices have reclaimed their position in an ascending channel but bulls are likely to be capped off at the $44 handle. A solid close in the channel will likely indicate another period of slow but consistent price increase. On the downside, the immediate support is at $40.63 and below that there is the monthly low support at $36,23.