Oil down 3% after Trump gets coronavirus and economies wobble

In this news, we discuss the Oil down 3% after Trump gets coronavirus and economies wobble.

NEW YORK (Reuters) – Oil prices fell 3% on Friday after US President Donald Trump tested positive for COVID-19, exploding risky assets, and as spike in global crude production threatens to overwhelm the weak market recovery.

Benchmark Brent and US crude were both heading for a second straight week of losses. The uncertainty surrounding the health of the US president has added to a series of hassles, including a lackluster US unemployment report and increased supply from the world’s major oil producers.

“It’s been a tough week – and now the president’s diagnosis is sending the markets shivering,” said John Kilduff, partner at Again Capital in New York. “The COVID-19 pandemic has weighed more heavily on the oil market than any other asset class. This is the worst-case scenario for the oil market. “

Brent was down $ 1.12, or 2.7%, to $ 39.81 a barrel at 11:32 a.m. EDT (3:32 p.m. GMT), after hitting a session low of $ 38.79 the barrel. US oil fell $ 1.04, or 2.7%, to $ 37.67 a barrel.

US crude and Brent are heading for declines of around 6% and 5% respectively this week in a second straight week of declines.

The recovery in the US labor market slowed in September, as non-farm payrolls increased by 661,000 jobs last month after rising 1.49 million in August, the US Department of Labor said.

Trump’s announcement that he and First Lady Melania Trump had tested positive for COVID-19 sparked massive sell-offs in the US and European stock markets.

The Organization of the Petroleum Exporting Countries (OPEC) crude supplies in September increased by 160,000 barrels per day (bpd) from the previous month, according to a Reuters survey.

The increase was mainly the result of increased supplies to Libya and Iran – OPEC members who are exempt from a supply pact between OPEC and its Russian-led allies, a group known as OPEC +.

Libyan production rose to 270,000 bpd, faster than analysts expected following the easing of the blockade by the Libyan national army.

Risky markets were also down amid concerns over ongoing negotiations between Congress and the White House on an additional economic stimulus package to stimulate economic demand.

New cases of COVID-19 worldwide have risen to more than 34 million, nearly 2 million more than at the end of last week, according to Reuters figures.

This week marked the grim milestone of one million deaths and several countries are tightening restrictions and considering lockdowns as infections accelerate, raising concerns about the impact on fuel demand.

Reporting by Aaron Sheldrick in Tokyo and Julia Payne in London; Edited by Marguerita Choy and Mark Potter

Original © Thomson Reuters

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