Oil prices are at a historic turning point. The market tries to balance concerns about more short-term Covid-19 lockdowns versus the high probability that a safe and effective vaccine will allow oil demand to start returning to normal.
U.S. refinery runs are still weak, partly due to storms, bad margins, and seasonal maintenance.
Oil funds got caught short as the demand outlook improves with hopes that we will get a coronavirus vaccine. There will be more pain for the shorts as they have to exit positions.
The vaccine against Covid-19 was powerfully effective, exceeding expectations with results that are likely to be met with cautious excitement.
While in the short-term, demand destruction may be on the market’s mind, the real cost to the energy sector will be production destruction. A situation that will have grave consequences on the market when oil and gas demand eventually return. 
Crude prices and oil products soared on hopes of gridlocks and goldilocks and a potential economic growth explosion.
U..K. Prime Minister Boris Johnson announced a second national lockdown for England late Saturday, following France and Germany’s imposition of new restrictions in response to surging Covid-19 infections.
Despite reducing global inventories and improving demand, OPEC plus will have to stay the course as Covid makes a comeback. If the shutdowns expand, they may have to find a way to make additional cuts.
Shutdowns in Europe and more restrictions in U.S. cities and states are raising fears about another wave of oil demand destruction.
The API reported a considerable hurricane shutdown that inspired a crude build of +4.577 million barrels with a Cushing, Oklahoma increase of 136.000 barrels.