Oil prices rose more than 1% on Monday, lifted by comments from physicians for U.S. President Donald Trump suggesting he could be discharged from hospital once Monday, just several days after his good test for COVID-19 sparked alarm that is widespread.
Trump’s health update eased uncertainty that is political global markets, pushing Brent (LCOc1) up to $39.79 a barrel by 0140 GMT, gaining 52 cents or 1.3%. U.S. West Texas Intermediate (WTI) crude (CLc1) was at $37.64 a barrel, up 59 cents, or 1.6%.
Rates had slumped a lot more than 4% on Friday amid uncertainty surrounding Trump’s health, adding to concern that rising coronavirus case numbers that could dampen international recovery that is economic.
But analysts said Monday’s rebound was driven by an easing of the worst fears about Trump’s health condition, albeit clouded by some signals that are mixed.
“I think it is the health that is improving of U.S. President … over the weekend there had been a lot of conflicting reports on his health, but generally he is improving,” stated Avtar Sandu, senior commodities manager at Phillip Futures.
“He could be back once again to work soon,” Sandu stated, adding that investors were worried about the stalled U.S. stimulus that is fiscal that could help oil demand data recovery.
Oil cold yet receive a jolt from an strike that is expanding Norwegian employees on Monday which could reduce the country’s production capacity by as much as 330,000 barrels of oil equivalent per day (boepd) or 8% of the country’s total output, based on the Norwegian Oil and Gas Association.
Signs of Trump’s health improving offset indications of rising oil supply in the market.
Libya, a user of this Organization of the Petroleum Exporting Countries (OPEC), has seen a near rise that is three-fold its output which hit 270,000 barrels per day the other day after eastern forces eased a blockade on the country’s oil infrastructure.
Meanwhile price that is present have prompted some U.S. producers to resume drilling. U.S. energy companies this week added oil and gasoline that is natural for a third week in a row for the first-time since October 2018, data from Baker Hughes showed on Friday.
But the rise in supplies comes at a time when China’s crude imports are slowing, which could depress Brent to $41 a barrel in fourth quarter, JP Morgan analysts said in a Oct. 2 note, leaving OPEC and its allies, including Russia, to manage another decision on supply cuts in November. Oil prices rose more than 1% on Monday.