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Oil prices fell sharply this Friday, after Donald Trump’s announcement that he had tested positive for covid-19, in a context of an imbalance between supply and demand that is still not conducive to a price recovery.
Read: (Donald Trump and his wife Melania, positive for covid-19)
At 10:05 in the morning Colombian time, a barrel of Brent from the North Sea for delivery in December was worth $ 39.37 in London, 3.91% less than on Thursday at the close. In New York, a barrel of WTI for November was down 3.74% to $ 37.31. On Thursday, the two benchmark prices had already fallen more than 3% at the close, having crossed the -5% mark during the session.
Read: (Why is the global economic recovery slowing?)
“Oil prices experienced a very turbulent session yesterday (Thursday) and declines continued to accelerate this morning on the news that US President Donald Trump tested positive for coronavirus,” commented JBC analysts.
Trump, 74, said in a tweet Thursday night that he tested positive, as did his wife Melania, and that he was going into quarantine. The announcement caused oil prices to plummet, which at that time were only losing 1%.
Investors remain concerned “by the fact that the oil production of the Organization of the Petroleum Exporting Countries (OPEC) is increasing while the rebound in demand is wearing off”JBC analysts added. And the absence of a new American recovery plan doesn’t help, according to Oanda’s Jeffrey Halley.
“The combination of tepid demand, rising global supply, and political uncertainty in the United States are creating a powerful cocktail that drives prices down.”said Stephen Brennock, an analyst at PVM.
AFP
