Oil Prices Rebound 2%

EghtesadOnline: Oil prices rose more than 2% on Monday, lifted by comments from doctors for US president, Donald Trump, suggesting he could be discharged from hospital as soon as Monday, just a few days after his positive coronavirus test sparked widespread alarm.

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06 October 2020

Trump’s health update seemingly eased political uncertainty in global markets, pushing Brent up to $40.10 a barrel, gaining 83 cents or 2.1%. US West Texas Intermediate crude was at $37.94 a barrel, up 89 cents, or 2.4%, CNBC reported.

Prices had slumped more than 4% on Friday amid uncertainty surrounding Trump’s health, adding to concerns about rising coronavirus case numbers that could dampen a global economic recovery.

Analysts said Monday’s rebound was driven by an easing of the worst fears about Trump’s health, despite some mixed signals about his condition.

“I think it’s the improving health of the president ... over the weekend there were a lot of conflicting reports on his health, but generally he’s improving,” said Avtar Sandu, senior commodities manager at Phillip Futures.

Libyan oil production has increased by about 20,000 barrels per day from last week to 290,000 bpd as exports ramp up, a Libyan oil source told Reuters on Monday on condition of anonymity.

Meanwhile recent price rises have prompted some US producers to resume drilling.

Caption: Prices had slumped more than 4% on Friday.