Oil adds more than 4% on Trump health news and Norwegian production

Oil adds more than 4% on Trump health news and Norwegian production

Oil adds more than 4% on Trump's health news and Norwegian production

Oil prices increased their gains during the day amid optimism about the health of US President Donald Trump.

In addition, the rise in prices was supported by the announcement of the suspension of production at four Norwegian fields due to workers' strike.

The cost of December futures for Brent oil on the London stock exchange ICE Futures by 14:38 Moscow time was $ 40.67 per barrel, which is $ 1.40 (3.57%) higher than the price at the close of the previous session. Earlier, Brent's price reached $ 40.88 per barrel (+ 4.1%).

The price of WTI futures for November in electronic trading on the New York Mercantile Exchange (NYMEX) by this time amounted to $ 38.56 per barrel, which is $ 1.51 (4.08%) higher than the level of the previous session.

On Sunday, US President Sean Conley's physician said that Donald Trump, who was diagnosed with coronavirus last week, is on the mend. “Since our previous conversation with you (journalists), President Trump's health has continued to improve,” the American media quoted him as saying.

One of Trump's attending physicians, Brian Garibaldi, expressed the hope that with a favorable development of events, the patient could be discharged as early as Monday.

Meanwhile, Norway's Equinor has suspended operations at the Gudrun, Gina Krog, Kvitebjorn and Valemon fields in the North Sea due to a strike by 54 workers. Norwegian Oil & Gas said last week that six fields in the North Sea operated by Equinor could be affected by union action, which failed to reach an agreement on wages. The total production from these fields is 330 thousand barrels of oil equivalent per day.

However, according to S&P Global Platts, the outlook for the oil market remains unfavorable, as new quarantine measures threaten the global economic recovery and put pressure on oil demand, while OPEC + is trying to reduce supply through compliance with production quotas.

The agency notes that this week oil prices will be sensitive to news of the spread of the coronavirus, as well as the fate of a new package of measures to support the US economy.

Saxo Bank analysts consider “a collapse like the April one is unlikely.” “However, it is clear that there will be no recovery until either the pandemic is brought under control or a publicly available vaccine is available,” said Ole Hansen, head of commodity strategy at Saxo Bank.

Leave a Reply

Your email address will not be published. Required fields are marked *