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Oil on the rise under coronavirus concern

by Bunkerist
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Oil surged to $ 41 on Tuesday as some oil companies halted U.S. Gulf of Mexico oil production due to the hurricane while rising coronavirus infections and Libya supply limited gains.

Brent crude LCOc1 was up 10 cents, or 0.3%, at $40.56 per barrel by 1244 GMT. WTI oil CLc1 gained 22 cents, or 0.6%, to $38.78.

Both benchmarks fell more than 3% on Monday.

While Hurricane Zeta provides a price increase under current conditions, it is expected to last for a short time.

Oil has plummeted due to rising coronavirus infections globally and a lack of progress in reaching agreement on the US coronavirus aid package. However, there is hope that an agreement will be reached before the 3 November elections.

The growing number of infections, isolation and travel restrictions are a serious threat, the situation seems more moody than ever.

Libyan production is expected to reach 1 million barrels per day in the coming weeks. This oversupply complicates efforts by OPEC members and allies to restrict production. Following this year’s record production cuts, the plans of the member countries, which were planning to increase production by 2 million barrels per day in January, were broken.

It was a clear message that the Russian President, who already spoke last Thursday, said he did not refuse to extend the cuts longer.

The latest US oil stock figures, due to be released late Tuesday and Wednesday, are expected to state increased supply. Analysts expect crude oil inventories to increase by about 1.1 million barrels.

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