Oil futures settled with a gain of more than 5% on Monday as optimism surrounding President Donald Trump’s COVID-19 treatments fueled risk-on sentiment. Traders also weighed prospects for another round of stimulus in the U.S. and monitored a strike that is curtailing crude output in Norway. Oil’s rise is “tied into broader market strength,” with prices up after posting a losses in the latter half of last week and U.S. equity benchmarks strengthening after selling off on Friday, said Robbie Fraser, senior commodity analyst at Schneider Electric.
West Texas Intermediate crude for November delivery climbed $2.17, or 5.9%, to settle at $39.22 a barrel on the New York Mercantile Exchange, following losses in the past two sessions. December Brent crude the global benchmark, advanced $2.02, or 5.1%, to $41.29 a barrel on ICE Futures Europe. That marked its first gain in five sessions. WTI oil futures dropped nearly 8% last week, while Brent fell more than 7%.
Trump was diagnosed with COVID-19 late last week. Doctors and White House staff offered conflicting accounts of the president’s condition over the weekend. Diminished fears of political turmoil around Trump’s health and ideas that prospects for another round of aid spending out of Washington are improving were credited with improving overall market sentiment, analysts said.
Another storm threatened to disrupt energy production in the Gulf of Mexico, with Tropical Storm Delta expected to strengthen into a hurricane late Monday or Tuesday, according to the National Hurricane Center. It’s forecast to move into the southeastern Gulf of Mexico Tuesday night or early Wednesday. Delta follows energy disruptions caused by Hurricane Sally last month.
