Oil prices continued its rise on Tuesday after jumping 5 per cent on Monday as the United States President, Mr Donald Trump, returned to the White House from the hospital where he was treated for COVID-19.
The Brent crude rose 67 cents or 1.62 per cent to $41.96 per barrel while the US West Texas Intermediate (WTI) crude gained 61 cents or 1.56 per cent to $40.67 per barrel.
The oil market latched onto the news that President Trump’s health was improving after he spent the weekend in the hospital when he tested positive for COVID-19 last Thursday.
On Tuesday, prices continued their rally after Mr Trump returned to the White House from the Walter Reed Medical Center on Monday evening.
Hopes that the US Congress could reach a deal on a new stimulus package also helped to boost the oil market.
In addition, supply disruptions due to a strike of oil workers in Norway and potential shut-ins in the U.S. Gulf of Mexico due to another hurricane also supported oil prices on Tuesday.
The oil workers’ strike has shut in as much as 330,000 barrels of oil equivalent per day, some 60 per cent of which is gas. The strike shut down four fields operated by Equinor in the North Sea, the Norwegian giant said but, noted that production at the giant oilfield Johan Sverdrup was still producing.
In the US Gulf of Mexico, Storm Delta continues to rapidly strengthen and now has maximum winds of 110 miles per hour.
Storm Delta is expected to approach the northern Gulf Coast later this week as a hurricane, and there is a significant risk of dangerous storm surge, wind, and rainfall hazards which could lead to shut ins.
Investors will be looking for weekly data on US crude oil stockpiles from the American Petroleum Institute (API) data and from the Energy Information Administration (EIA) on Wednesday.
On average, market analysts expect the EIA to report that crude stocks fell by 2 million barrels last week. This will help lend support to the market.
