The news that President Trump was about to leave the hospital cooled the US political instability, and pushed the world oil price up by more than 2%.
|OPEC and its allies may have to cut supplies by November 2020. Photo: AFP|
Brent oil price reached 40.10 USD / barrel, up 2.1%, while WTI oil price in America increased by 2.4% and traded 37.94 USD / barrel in 5/10 session.
Meanwhile, rising strikes in Norway caused the four oil and gas fields of the Equinor multinational oil company to close, also pushing oil prices up. The strike caused Norway’s oil production to fall 330,000 barrels a day, or 8% of total production, according to the Norwegian Petroleum Association.
Last weekend, oil prices slumped more than 4% in session 2/10 after the news that US President Donald Trump was infected with Covid-19 along with information disturbances about the health of the head of the White House.
Analysts said that the rebound in oil prices today was due to the positive information about the health of President Trump, although there are still conflicting opinions.
“There are conflicting news about Trump’s health, but overall Mr Trump’s health is improving,” said Avtar Sandu, senior managing director at financial brokerage Phillip Futures.
“He (Donald Trump) can come back to work soon”, Sandu added, affirming that investors’ concern is the impasse of fiscal stimulus package that will soon be released.
Meanwhile, the market is seeing signs of increasing supply. Libya, a member of the Organization of the Petroleum Exporting Countries (OPEC), recorded output nearly tripled and hit 270,000 bpd last week after oil infrastructure congestion was reported. somewhat relieve.
Howie Lee, an economist from OCBC Bank (Singapore), said the supply deficit problem could disappear if Libya produced half a million barrels of oil a day.
In addition, the recent hike in oil prices will cause US oil producers to re-activate production. Many US energy companies put their rigs into operation for the third week in a row, according to data released by Baker Hughes last week.
However, an analyst from JP Morgan said that the world oil supply increased in time for China’s crude oil import slowing, which could pull the Brent oil price down to 41 USD / barrel in the fourth quarter of 2020; thus pushing OPEC and its allies, including Russia, to be forced to cut supplies in November 2020.