Economy

Oil price extends losses after Trump tests positive for coronavirus

Oil price extends losses after Trump tests positive for coronavirus”

USA oil was down $2.01, or 5.19%, at $36.71.

U.S. West Texas Intermediate (WTI) crude fell $1.31, or 3.2 per cent, to settle at $39.29 per barrel.

Trump contracting the virus has sharpened focus on how the outcome of the election could impact oil markets, said Bjarne Schieldrop, chief commodities strategist at SEB AB.

US and Brent crudes are heading for drops of around five per cent and six per cent respectively this week for a second consecutive week of declines.

US job growth slowed more than expected in September as the recovery from the COVID-19 slump shifts into lower gear.

Analysts in a Reuters poll forecast U.S. crude stockpiles increased 1.4 million barrels last week.

The US president announced that he and first lady Melania Trump had tested positive for Covid-19, shortly after one of his closest aides, Hope Hicks, had fallen ill with the coronavirus.

More news: Honda announces exit from F1 after 2021 season

Oil was already in negative territory after a bipartisan deal on USA stimulus continued to elude House Speaker Nancy Pelosi and the White House, adding to fears about worsening demand without more support for the economy.

"If it happens, the United States stimulus checks will go a long way to shoring up USA oil demand at a most critical juncture and could move oil prices back into a pre-September frame of mind", AxiCorp market strategist Stephen Innes said in a note. "Today's news that U.S. President Trump and the First Lady have contracted COVID has lent additional poignancy to the whole picture and sent all risky assets, including oil futures, into a tailspin", Commerzbank said in a daily research note.

ANZ Research noted reports of Russian Federation increasing production beyond its quota within the grouping of OPEC and its allies, called OPEC+, which has worked since April to curb crude supply.

More than a million people worldwide have died from Covid-19, according to a Reuters tally, a bleak milestone in a pandemic that has devastated the global economy and demand for fuel.

Libya's production has risen faster than analysts expected with the relaxation of a blockade by the Libyan National Army, which is trying to take control of the capital and is mainly based in the eastern part of the country, where many oil facilities are located.

"Infection rates are going up, the global death toll has surpassed the 1 million mark and the world is becoming a gloomy place once again", said PVM Oil analyst Tamas Varga.

Growing supply from the Organization of the Petroleum Exporting Countries (OPEC) also weighed on the market, with output having risen by 160,000 barrels per day in September from August as some Libyan installations restarted and Iran's exports grew, a Reuters survey found.



Like this

loading...
loading...

Latest


02 October 2020
Open-World Action RPG ‘Genshin Impact’ Now Available Worldwide
When you see how the land is arranged, enemies look, and how you engage them, it's kind of easy to make that comparison. In fact, as the South China Morning Post reports, Genshin Impact had the biggest global launch of a Chinese game ever.

02 October 2020
BitMEX Owners Indicted for Accepting US Clients and AML Violations
This news sent shockwaves throughout the cryptocurrency market, with Bitcoin's price reeling from $10,900 to lows of $10,400. He said that market integrity plays an important role in helping "new and innovative financial products" flourish.

02 October 2020
New batch of Emoji characters for iOS 14.2 beta revealed
Apple says that what you should try is unpairing your smartwatch from the iPhone, which is essentially a full reset of the device. Now, Apple has said that the new emoji will be available for iOS, macOS and watchOS this fall.

02 October 2020
Billie Eilish Drops Music Video for 'No Time to Die'
His last turn as Bond was in 2015's Spectre , which at the time was reported to be his final outing as the spy. The music video ends with flumes of smoke erupting from behind Eilish before fading to black.

02 October 2020
Rihanna presents Savage X Fenty Show featuring Lizzo, Paris Hilton and more
From makeup to skin care to lingerie, Rihanna ensures that all of her products work for people of all sizes, shapes and shades. She has been occupied frequently rolling out luxurious wear Fenty in LVMH. "It's always about being inclusive", she said.

02 October 2020
Dow Futures Fall 400 Points, 1.5%, on Trump Coronavirus News
Instead, there were only hopes that were periodically raised and dashed as government officials took turns criticizing each other. USA benchmark crude lost $1.15 to $37.57 per barrel in electronic trading on the New York Mercantile Exchange.

02 October 2020
USA adds 661000 jobs in September and unemployment rate falls to 7.9%
The loss of tasks in the low-wage services markets like dining establishments and bars has actually misshaped wage development. By comparison with September, employers added almost 1.5 million jobs in August, 1.8 million in July and 4.8 million in June.

02 October 2020
Shawn Mendes Shares 'Handwritten' Letter About New Album 'Wonder'
Alongside a red heart emoji, she wrote: "the world could use some magic, beauty, and Wonder always, but especially right now". He's crafted this album with every last bit of his soul, his spirit, and his essence with the purest of intentions.

02 October 2020
WhatsApp now lets you mute contact or group chats forever
WABetaInfo notes that if it does not appear immediately in your Beta version, it should be enabled within a few days. The reason to remove the feature is now unknown and WhatsApp could bring it back in the upcoming updates.

02 October 2020
Samsung Galaxy A3 Core launched: Price, specifications and other details
The key highlights of the device are a 3,000mAh battery, a compact a 5.3-inch HD+ display, a total of two cameras, and more . It will have 1 GB of RAM and 16 GB of internal storage that could be expanded upto 512GB through a MicroSD card.