Updated Oct 2, 2020 - Energy & Environment

Oil drops after Trump's COVID bombshell

an oil barrel with a mask around it
Illustration: Sarah Grillo/Axios

Oil prices plunged after President Trump's overnight announcement that he tested positive for COVID-19 and federal data this morning that showed a slowdown in U.S. hiring.

Why it matters: Oil prices were already under downward pressure from the virus' persistence and, per Reuters, the U.S. impasse over stimulus talks.

Crude's recovery from its spring depths has already been stalled for months as the pandemic's staying power hinders the pace of the demand revival.

  • WTI has largely been hanging around the low-$40s range at best since June, a level that ensures continued financial jeopardy for producers.

What they're saying: “Having already had to deal with growing concerns over the demand outlook, the oil market has been unable to escape the broader market sell-off following President Trump’s positive Covid-19 test result,” ING Bank NV analyst Warren Patterson tells Bloomberg.

The big picture: Via AP, "The positive test reading for the leader of the world’s largest economy heaps uncertainty onto a growing pile of unknowns investors are grappling with, first among them how it might affect the Nov. 3 election and American policies on trade, tariffs and many other issues beyond then."

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