empty
29.12.2020 11:11 AM
Oil copes with the negative as prices slowly move to growth

This image is no longer relevant

Crude oil prices climbed on Tuesday morning following the negative correction that occurred the day before. The reason for the positive dynamics was the news about the active adoption of a new financial incentive program in the United States of America.

According to the latest data, the United States House of Representatives signed the document raising the previously pledged $600 to $2,000 relief payments to US citizens, as required by President Donald Trump. It seems that the government has decided to put an end to the tough standoff that lasted several months before, and finally pass the long-awaited bill. At the same time, it is worth noting that 275 people voted for the adoption of the new program, and only 134 voted against it. However, there is still approval in the Senate, which, quite possibly, will have serious difficulties.

Recall that on Sunday, Trump put his signature on the draft of the new state budget for the year 2021. The total amount of financial support for the year is $2.3 trillion. It also includes the incentive package amounting to $900 billion.

All this news about the intensified process of ratification of relief payments to the US citizens causes a mixed mood in the market. On the one hand, the early start of payments will support the market, on the other, there are too many doubts about the fact that it will still take place.

In addition, the news about the appearance and spread of the coronavirus mutation, which was discovered in the UK, has a huge negative impact on the oil market. The new COVID-19 strain has already imposed a number of severe restrictions, including on the movement of citizens. And this, in turn, can cause the rapid loss of oil of its previously gained positions. According to most analysts, in the first month of the new year, demand for hydrocarbons will be extremely unstable and low. And this, of course, does not please investors at all.

However, the epidemiological situation in the world continues to deteriorate. Cases of the new virus were already confirmed in Canada, Japan, Norway, France, and many other countries. And as emphasized earlier, the new variant of the virus is more aggressive and spreads quickly.

More stringent and restrictive quarantine measures on movement began to be introduced by the authorities of individual countries. In China and South Korea, social distancing measures will be in effect throughout the holidays. The authorities see this as the only way to contain the already quite active daily increase in morbidity in these territories.

The price of futures contracts for Brent crude oil for delivery in February on the trading floor in London rose 0.47% or $0.24, which sent it to $51.1 per barrel. Monday's trading ended with a reduction of 0.84% or $0.43, which sent the final price at $50.86 per barrel.

The price of futures contracts for WTI light crude oil for February delivery on the electronic trading platform in New York added 0.67% or $0.32, which sent it to $47.94 per barrel. Monday's trading ended with a reduction of 1.26% or $0.61, which sent the final price at $47.62 per barrel.

Maria Shablon,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

US Market News Digest for March 17

US stock indexes, including the S&P 500 and Nasdaq, ended the week confidently in positive territory. This was largely due to encouraging developments in trade talks with China and resilient

Ekaterina Kiseleva 13:32 2025-05-05 UTC+2

Europe on pause: What's behind the stock market plunge and Trump's unexpected activity

European stocks fell slightly; STOXX 600 - minus 0.1%, France - minus 0.3% Investors await data on US-China talks, earnings and Fed decision Trump: 100% tariffs on foreign films, Alcatraz

Thomas Frank 11:34 2025-05-05 UTC+2

US Market News Digest for May 2

US equity indices continue to climb despite lingering economic uncertainty. Investor optimism is being driven by expectations of progress in trade talks between the US and China. Nevertheless, ongoing economic

Ekaterina Kiseleva 13:14 2025-05-02 UTC+2

US Market News Digest for May 1

The US stock market weathered notable volatility in April, but a successful rally helped major indices recoup losses. Despite data showing a 0.3% contraction in US GDP for the first

Ekaterina Kiseleva 11:54 2025-05-01 UTC+2

Feast in the Storm: S&P 500 Celebrates Gains as Dollar Drowns and China Weakens

S&P 500 Posts Sixth Straight Day of Gains Oil Falls More Than 1% China Manufacturing Activity Plummets as Trump Tariffs Continue to Squeeze Dollar Set for Worst Month

Thomas Frank 12:09 2025-04-30 UTC+2

US Market News Digest for April 30

US stock indices remain on a positive trajectory, but market pressure has intensified due to a sharp drop in Super Micro shares and the upcoming earnings reports from tech heavyweights

Ekaterina Kiseleva 11:13 2025-04-30 UTC+2

Stock markets regaining optimism. Where to find new entry points

European stocks rose amid hopes of easing trade tensions between the US and China. WTI oil fell by 1.54% to $62.05, while Brent declined by 1.51% to $65.86

12:42 2025-04-29 UTC+2

US Market News Digest for April 29

The S&P 500 and Nasdaq continue to climb, maintaining their upward momentum despite mixed performances across other sectors. Softer rhetoric from the Trump administration and expectations of further tariff relief

Ekaterina Kiseleva 11:59 2025-04-29 UTC+2

Optimism returns to the markets: where to look for new growth points

European stocks rose amid hopes for a reduction in trade tensions between the US and China. WTI oil fell by 1.54% to $62.05, Brent by 1.51% to $65.86

Thomas Frank 10:42 2025-04-29 UTC+2

US Market News Digest for April 28

The S&P 500 and Nasdaq ended the previous trading session higher, defying choppy performance across Asian and European exchanges. Investors are now focused on the upcoming economic data and earnings

Ekaterina Kiseleva 11:31 2025-04-28 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.