Singapore Oil prices rose on Friday despite the ongoing weakness in demand. In the United States, the number of people infected with corona has recently increased massively, now it is more than in China. In early trading, a barrel (159 liters) of North Sea Brent cost $ 26.58. That was 24 cents more than on Thursday. The price of a barrel of American WTI rose 43 cents to $ 23.03.
While the number of cases, particularly in New York, skyrocketed, the effects of containment measures on the real economy were already apparent on Thursday. The number of initial applications for US unemployment benefits there rose about ten times in the week to March 21, from 282,000 to around 3.3 million. That was the highest value since data collection began.
Against this background, the recovery on the US stock markets could not last long, commented Ed Moya, market expert at Oanda. There is growing concern on the market about the accelerated spread of the virus in the USA. A deteriorating mood on the financial markets should also weigh on oil prices.
In addition to the economic consequences of the spread of the corona virus, the price war between the leading Opec nation of Saudi Arabia and Russia continues unabated. However, due to the pressure on their public finances from the low oil price, some smaller Opec countries are now pushing for a return to the negotiating table. Officials and industry experts familiar with the matter described the decision of Saudi Arabia to increase the production volume as nerve-racking for the partner countries.
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