Oil Drops 3 Percent

EghtesadOnline: Oil prices were down 3% on Friday after Donald Trump tested positive for Covid-19 and negotiators failed to agree a US stimulus package just as rising global oil output threatens to overwhelm a weak price recovery.

News ID: ۷۵۱۱۷۴

03 October 2020

Brent crude slipped on the Trump news and was down $1.23, or 3%, at $39.70 a barrel. US oil was down $1.17, or 3%, at $37.55, wire services reported.

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

In a tweet, the controversial US president said that he and first lady, Melania Trump, tested positive for Covid-19.

Oil was already in negative territory after a bipartisan deal for more economic relief in response to the pandemic continued to elude House Speaker Nancy Pelosi and the White House, adding to fears about worsening demand without more support for the economy.

Crude supplies from the Organization of the Petroleum Exporting Countries rose in September by 160,000 barrels per day from a month earlier, a Reuters survey showed.

The increase was mainly the result of increased supplies from Libya and Iran, OPEC members that are exempt from a supply pact between OPEC and allies led by Russia - a group known as OPEC+.

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