BusinessNews

Oil Jumps 1% Following Drop in Everyday Coronavirus Cases

Oil prices soared 1% Wednesday, with Brent growing a seventh consecutive day, amid deep optimism as new coronavirus cases drop for the second day in China and concerns rose over supply after a U.S. shift to cut more Venezuelan crude from the market.Oil Jumps 1% Following Drop in Everyday Coronavirus Cases

Brent crude was up by 59 cents, i.e., 1%, at $58.34 per barrel, while U.S. oil was up 55 cents, i.e., 1.1%, at $52.60 per barrel.

China remains to be struggling to get production going again in the world’s second-largest economy, after imposing stringent metropolis lockdowns and travel restraints to curb the virus that has now killed over 2,000 people; however, buyers remain confident that the economic fallout may be short-lived.

Official data confirmed that new cases in China dropped for a second consecutive day, although WHO has cautioned there’s not enough information to know if the epidemic was being contained.

Brent has risen almost 10% since reaching the bottom low for this year to date last week, most recently backed by a U.S. decision Tuesday to blacklist a trading subsidiary of Russia’s Rosneft that President Trump’s administration said provides financial aid to Venezuela’s government.

America struck sanctions on Rosneft Trading, the Geneva-stationed unit.

The Swiss unit “has been Venezuela’s main channel for brokering cargos, which find their way predominantly to refineries in China,” stated Stephen Innes, chief market strategist at AxiCorp.

Tags

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *