Oil Futures Settle Sharply Higher On Stimulus Hopes, Norway Unrest
Crude oil prices moved higher on Monday, lifted by reports about improvement in U.S. President Donald Trump’s health and prospects of his early discharge from hospital.
Fresh optimism about a new U.S. coronavirus relief package after House Speaker Nancy Pelosi told CBS that progress was being made on coronavirus relief legislation helped ease concerns about energy demand outlook.
Another positive trigger for oil today was the report about an escalation in workers’ strike in Norway.
West Texas Intermediate Crude oil futures for November ended up $2.17 or about 5.9% at $39.22 a barrel.
Brent crude futures advanced $2.30 or nearly 6% to $41.57 a barrel.
U.S. Treasury Secretary Steven Mnuchin and Pelosi reportedly consulted Federal Reserve Chair Jerome Powell about their stimulus plan talks.
An escalation in strike among offshore workers in Norway that resulted in the shutting down of six Norwegian offshore oil and gas fields pushed up oil prices.
According to the Norwegian Oil and Gas Association (NOG), the strike will likely cut Norway’s total output capacity by over 330,000 barrels of oil equivalent per day, or about 8% of total production.