Oil prices rise after Friday's decline

Oil prices rise after Friday's decline

Oil prices rise after Friday's decline

Oil prices of benchmark marks on Monday are growing after a noticeable decline following the results of the last week, when Brent lost about 8% in price, WTI – 7.4%.

On Friday, oil prices fell on news that US President Donald Trump and his wife had tested positive for COVID-19.

“(Oil) futures have been under pressure for several weeks as rising incidences in Europe and the US have raised fears of economic recovery. However, reports that Donald Trump and several other White House officials have contracted the virus have heightened that concern, as a result whereby Brent and WTI fell sharply by the close of trading on Friday, “analysts at ANZ, quoted by S&P Global Platts, say.

On Sunday, US President Sean Conley's physician said Donald Trump was 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.

“Oil prices opened up trading on the back of the rest of the markets after the US President's medical staff gave an optimistic outlook on his health,” said Stephen Innes, AxiCorp chief market strategist.

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, writes S&P Global Platts.

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

The cost of December futures for Brent oil on the London ICE Futures exchange by 8:23 Moscow time on Monday is $ 40.08 per barrel, which is $ 0.81 (2.06%) higher than the price at the close of the previous session. As a result of trading on Friday, these contracts fell by $ 1.66 (4.1%) – to the minimum since June 12, $ 39.27 per barrel.

The price of futures on WTI for November in electronic trading of the New York Mercantile Exchange (NYMEX) by this time is $ 37.93 per barrel, which is $ 0.88 (2.38%) higher than the level of the previous session. On Friday, futures dropped in price by $ 1.67 (4.3%) – to $ 37.05 per barrel, which was the lowest price at the close of trading since September 8.

Leave a Reply

Your email address will not be published.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