Trump will be discharged from the Norwegian energy giant, causing a V-shaped reversal in oil prices
Foreign Exchange Tianyan APP News:On Monday (October 5), oil prices soared because doctors said that US President Trump (Donald Trump) was receiving treatment in the hospital for contracting new coronary pneumonia, but he may be discharged soon. At the same time, traders weighed whether the United States will introduce a new round of economic stimulus measures and paid attention to the one that led to a reduction in Norwegian crude oil production. Currently, 6 offshore oil and gas fields in Norway have been closed. As of press time, WTI crude oil futures rose 2.48 US dollars, or 6.69%, to 39.53 US dollars per barrel; Brent crude oil futures prices rose 2.36 US dollars, or 6.01%, to 41.63 US dollars per barrel.
Schneider Electric (Schneider Electric) senior commodity analyst Robbie Fraser said that the rise in oil prices is”related to the broader market.” .”This repetitive action is at least partly related to President Trump’s health.” Fraser said in a report:”Last Friday, he was diagnosed with new coronary pneumonia caused by uncertainty caused by loss, and related His suggestion that he could leave Walter Reed Hospital also gave support to Monday’s transaction.”
After Trump was diagnosed, oil prices plummeted by more than 4%last Friday. However, he unexpectedly appeared in the convoy outside the hospital where he was being treated on Sunday, which helped improve market sentiment. According to his doctor, he will be discharged from the hospital later on Monday.
Analysts said that the weakening of concerns about political turmoil caused by Trump’s health and the idea of an improved outlook for Washington’s new round of aid spending are considered to be the reason for the overall improvement in market sentiment. The Speaker of the US House of Representatives, Nancy Pelosi, said on Sunday that negotiations with Secretary of the Treasury Steven Mnuchin are making progress.
Oil has also received escalating support from the workers of Norwegian oil and gas giant Equinor ASA due to wage issues. Six offshore oil and gas fields in Norway were closed on Monday. According to data from the Norwegian Oil and Gas Association (NOG), the total production capacity in Norway will be reduced by 330,000 barrels per day, accounting for approximately 8%of total production. German Commercial Bank (Commerzbank) analyst Carsten? Carsten Fritsch (Carsten Fritsch) said:”This will not lead to any serious tightening of market supply, because the current market’s worries about demand and worries about oversupply dominate.” Analysts said that Norwegian oil production is reduced. Mainly offset by the increase in oil production in Libya. Speaking to Reuters on Monday, Libya’s oil production has increased to 290,000 barrels per day, almost three times the output during the period from the beginning of the blockade in January to the end of the blockade in September.
The National Hurricane Center said that another storm may disrupt energy production in the Gulf of Mexico. Tropical storm Delta is expected to be on Tuesday evening or early Wednesday. Enter the southeast of the Gulf of Mexico. Hurricane Sally last month disrupted energy supply.
At the same time, the recent rise in oil prices has prompted some US producers to resume drilling. Last Friday, Baker Hughes’ data showed that US energy companies have added oil and natural gas rigs, which is the third consecutive week of increase since October 2018.
The latest data of foreign exchange Tianyan shows that the US WTI crude oil futures price is reported at 39.53 US dollars/barrel, and the Brent crude oil futures price is reported at 41.63 US dollars/barrel.