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October 6, 2020

Oil prices rise after Trump’s return to White House from hospital

Oil prices edged higher after US President Donald Trump returned to the White House from hospital after being admitted for Covid-19 treatment on 2 October.

By Agne Suipyte

Oil prices edged higher after US President Donald Trump returned to the White House from hospital after being admitted for Covid-19 treatment on 2 October.

The price also increased due to concerns that refineries could be hit by tropical storm Delta in the Gulf of Mexico.

Brent LCOc1 futures rose $0.25 or 0.6% to reach $41.54 a barrel, while US West Texas Intermediate (WTI) crude CLc1 futures increased by $0.36 or 0.9%, touching $39.58 a barrel, Reuters reported.

Oil prices fell sharply when Trump was admitted to the hospital. Investors worried about political uncertainty in the US as the country is all set for a presidential election on 3 November.

Currently, the oil market is concerned about supply issues due to an extended labour strike in Norway, which has resulted in the closing of six offshore oil and gas fields, as well as the evacuation of the Gulf oil platforms.

National Australia Bank commodity research head Lachlan Shaw said: “It’s the supply-side factors that have changed in the last 24 hours and are contributing more to the uplift.”

According to the Norwegian Oil and Gas Association, the workers’ strike could reduce Norway’s production capacity by approximately 330,000bpd of oil or 8% of its total production.

Shaw added: “There’s better (fuel) demand sentiment, surrounding the potential for US fiscal agreement, and perhaps President Trump leaving hospital might drive a bit of impetus to conclude a deal there.”

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