Crude oil prices broke below $40/barrel on Friday after U.S. President Donald Trump tested positive for the COVID-19, while a U.S. stimulus package eluded negotiators amid ongoing worries about demand.
At the time this report was drafted, Brent crude dropped on the news of Trump’s new COVID-19 status and was down by over 3% to trade at $39.50 a barrel while U.S. oil plunged lower by 3.56% to trade at $37.33/barrel
U.S. oil is heading for a drop of more than 5% this week, while Brent is on track to fall more than 4%, in a second consecutive week of decline for both contracts.
In a tweet, Trump a few hours ago disclosed that he and First Lady Melania Trump tested positive for COVID-19.
Crude oil prices were already trading at negative territory after a bipartisan deal for more economic relief in response to the pandemic continued to elude House Speaker Nancy Pelosi and the President Trump’s administration adding to fears about worsening demand without more support for the economy.
“It was a weak market already and this event has come along and added uncertainty, giving pause for people to say, ‘you know what, I’m taking some risk off the table’,” said Lachlan Shaw, head of commodity research at National Australia Bank in Melbourne.
Crude supplies from the Organization of the Petroleum Exporting Countries (OPEC) rose in September by 160,000 barrels per day from a month earlier, a Reuters survey revealed.