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7.10.20_The price of oil has risen to $ 40 a barrel – a positive stimulus for the US economy?

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Futures in New York rose 0.5%, after rising sharply by 5.9% on Monday and recording the largest daily increase since May. President Donald Trump said on Twitter that he could leave the hospital on Monday night, easing concerns about his health. His diagnosis with Covid-19 was seen by markets as strengthening the prospects for both fiscal stimulus and a more difficult electoral situation on the part of the current president.

Another meeting about the pandemic relief package was also held in the USA on Monday, which was also attended by House Speaker Nancy Pelosi and Treasure Secretary Steven Mnuchin. Despite Donald Trump’s reluctance, it seems that the House has still not reached a final solution.

Oil prices have been recovering from the sell-off in recent weeks due to fears that the return of a pandemic in large economies could negatively affect the fragile recovering demand for oil. Governor Andrew Cuomo has said public and private schools in outbreaks in New York must close on Tuesday, and Ireland is debating a return to full lockdown. The reopening of plans around the world is questioned.

Meanwhile, US production is expected to remain subdued as the industry struggles with layoffs and bankruptcies. According to Deloitte, almost three-quarters of the job losses caused by the pandemic in the US oil and chemical industries may not return before the end of next year.

In terms of production, the strike in Norway will reduce the production of approximately 330,000 barrels of oil and natural gas per day, of which about a third is oil, which is directly related to oil markets. Libyan oil production, on the other hand, rose to 295,000 barrels after the ceasefire in the OPEC civil war and the canceling of blockade of energy facilities.

CEO of Total company, Patrick Pouyanne said fuel consumption in Europe was almost back from last year’s level. In the United States, demand for gasoline has risen by 3.2% over the past seven days from a week earlier, reversing three consecutive weeks of decline, according to GasBuddy.

Attention is also shifting to US Hurricane Delta, which is heading to Mexico. Its speed could reach 169 kilometers (105 miles) per hour as it crossed the Gulf of Mexico, making it a Category 2 storm on a five-point Saffir-Simpson scale.

The Saudi Ministry of Finance plans oil prices to be around $ 50 a barrel for the next three years, according to Goldman Sachs Group Inc. (NYSE: GS).

 

Source: Investing.com

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