Oil prices rallied for a second day in a row after falling below $100 a barrel on Wednesday as global markets strengthened for the first time in two months, especially since last May. Fear of economic recession.
During today’s trade, US crude futures rose 2.44% to settle at around $105.67 a barrel. Brent crude futures also rose 2.35% to settle around $108.81 a barrel. Brent crude futures also rose 2.03% to settle at $106.77 a barrel.
Crude oil prices rose for a second day in a row, coinciding with concerns about a global supply shortage in markets that overshadowed fears of weak demand resulting from a possible global economic slowdown, as investors focused more on fears. Shortage of goods after Russian court decision to temporarily close oil tanker route from Kazakhstan for environmental reasons.
In addition, crude oil prices benefited from the release of US employment data, which showed a strong positive, strongly confirming that the US economy is in a very strong position and not close to recession, and this boosted the markets. Confidence in the strength of US oil demand.
At the same time, Shanghai health authorities decided on Friday to gradually ease the lockdown restrictions imposed to combat the coronavirus outbreak and reopen theaters, marking the start of a plan to gradually resume daily activities. Life inside the city, and the move had a positive effect on oil prices and optimism about the strength of Chinese demand for oil this year.
On the other hand, oil prices are still affected by the rising corona fears after the recent high number of injuries in several countries, which may soon lead to the imposition of new lockdown restrictions to contain the outbreak of the deadly coronavirus. Even in this scenario, the demand for crude oil may be severely affected, which increases the pressure on oil in the market.
The World Health Organization confirmed in a statement released today Friday that the organization’s emergency committee will hold its twelfth meeting today in Geneva to review developments in the novel coronavirus outbreak, in accordance with international health regulations. The organization’s Director General, Dr. Tedros Adhanom Ghebreyesus.
In terms of other energy sources, apart from oil prices, gasoline contracts rose 0.08% during today’s trade to settle at $3.4232 per gallon, while natural gas contracts were down $6.186 per million thermal units, down 1.76%, and heating oil contracts were down 1.13% and around 3.6323 USD was recorded.
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