D.he oil prices will rise significantly on Monday. A barrel (159 liters) of the North Sea Brent cost $ 40.89 last, $ 1.62 more than on Friday. The price of a barrel of the American West Texas Intermediate (WTI) rose by $ 1.74 to $ 38.79. This means that oil prices are still well below last Wednesday’s level. The increase is justified with hopes for an early recovery of Donald Trump. The president, infected with the corona virus, could soon return to the White House, it was said recently.
Since Trump is seen as a supporter of the domestic oil and gas industry, the reasoning seems reasonable at first glance. However, this would presuppose that the news of the president’s illness actually triggered the price losses. However, this began in the run-up to the release of American inventories last Tuesday and then continued on Thursday as concerns about demand dominated. Whether the further price drop on Friday was a consequence of the news of the infection of Trump is therefore doubtful, especially since the chances for a new economic stimulus package were assessed much less optimistically on Friday than on Monday.
However, market observers see only limited upside potential recently: “The oil price is recovering in the course of increasing risk appetite”, said Jens Pedersen, analyst at Danske Bank. ” According to Commerzbank commodities expert Carsten Fritsch, the strike in the Norwegian oil and gas industry is not a reason for higher prices, but he sees the reason for the upturn in a more positive general market sentiment due to the news about President Trump’s improved health.