MELBOURNE – Oil prices spiked in early trading Tuesday after US President Donald Trump returned to the White House from hospital after being hospitalized for treatment for COVID-19 last Friday, as another storm hit unleashed in the Gulf of Mexico of the United States.
Prices fell sharply last Friday when Trump went to the hospital, then jumped more than 5% on Monday after he said he would return to the White House and as hopes rise that a deal could be agreed on a stimulus package. US economic policy to counter the impact of the coronavirus pandemic.
US West Texas Intermediate (WTI) crude CLc1
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Brent crude LCOc1 futures rose 8 cents, or 0.2%, to $ 41.37 a barrel.
An expanding workers’ strike in Norway, which closed six offshore oil and gas fields, and the evacuation of oil rigs in the US Gulf of Mexico before the tropical storm Delta bound for Louisiana and Florida also helped support prices.
“It’s the supply-side factors that have changed in the past 24 hours and are contributing most to the increase,” said Lachlan Shaw, head of commodities research at the National Australia Bank.
The Norwegian strike will cut the country’s total production capacity by just over 330,000 barrels of oil equivalent per day, or about 8% of total production, according to the Norwegian Oil and Gas Association.
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Meanwhile, hopes for a bipartisan US economic aid package have grown as House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin spoke on Monday and prepared to speak again on Tuesday, continuing a recent flurry of activity for a agreement on legislation.
“There is better demand (fuel) sentiment surrounding the potential for a US tax deal, and perhaps President Trump leaving the hospital could give some impetus to strike a deal there,” he said. Shaw.
Data from the American Petroleum Institute on Tuesday and the US government on Wednesday will provide a picture of any recovery in demand.
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Five analysts interviewed by Reuters estimate, on average, that crude oil inventories increased by 400,000 barrels in the week through October 2, while gasoline inventories likely fell by 900,000 barrels and distillate stocks, which include diesel and fuel oil. probably decreased by 1.4 million barrels. .