Yesterday, the oil futures markets managed to close in positive territory despite the surging fears regarding demand.
However, the gains were partially fueled by a potential disruption in Norway's oil production. The Norwegian Oil and Gas Association announced that if oil workers decide to go on a strike on Wednesday, oil firms from the country are planning to shut down 22 percent of the oil and gas output (the equivalent to 900,000 oil barrels per day).
Reports from the region indicate that around 324 out of 7,300 employees are planning to go on a strike if the state fails to broker a satisfactory deal regarding the workers' annual pay.
West Texas Intermediate crude oil futures gained 1.22 percent on Monday, closing the session at the 40.60 level. Likewise, Brent oil futures advanced 0.31 percent during the session, closing at the 42.43 level.
The G20 energy ministries reaffirmed their willingness to ensure that the energy sector makes a "full, effective contribution" to overcome the coronavirus pandemic. They also recognized the role of stimulus packages in terms of stimulating inclusive economic activities and pledged to continue to work together to create the conditions for sustained capital investments.
Fears for a drop in global oil demand took over the market on Tuesday, as the number of coronavirus cases kept rising, while the death toll surpassed the million-death mark.
Several countries in Europe are reporting a spike in the number of reported cases, among them France, Spain, and the United Kingdom, though some attribute it to an increase in those countries testing capacity. On Friday, the United States reported a record one-day rise in coronavirus cases, as the virus spread through the Midwest.
By 7:18 GMT the West Texas Intermediate went down by 0.99 percent, falling to the 40.20 level, in the same way, the Brent oil futures dropped 0.86 percent, falling to the 42.50 level.
US Stocks Rally, Led by Banking and Energy Sectors
The US stock markets closed yesterday in the positive territory, driven mainly by the advance of the bank and energy sectors. The Dow Jones Industrial Average gained 1.51 percent during the session, closing at the 27,584.06 level, while the S&P 500 advanced 1.61 percent, closing the session at the 3,351.60 level. In the same way, the Nasdaq 100 went up by 1.91 percent, hitting the 11,364.45 level at the end of the session, while the NYSE Composite remained steady during the session, closing at the 12,677.54 level.
The political situation in the United States is getting more tense, now that it was published that US President Donald Trump only paid $750 in federal income taxes in each of his first two years as a president. Trump has also announced the nomination of Amy Coney Barrett as the possible successor of the recently deceased Supreme Court Justice Ruth Bader Ginsburg. Barrett's staunch conservative leanings have frightened many voters, and voter registration jumped some 40 percent since the nomination. Biden currently leads in the polls 60 percent to Trump's 40.
The discussions about a possible fresh stimulus package are set to restart this week, as house democrats are proposing a $2.4 trillion package that would be spent on direct payments to eligible Americans, unemployment benefits, small-business loan funding, as well as aid to the airline sector.