Mixed moods on muted oil market

The US' economic stimulus package and a mutated Covid-19 strain in Britain haunt crude prices Tuesday morning.

Photo: Jacob Ehrbahn

Tuesday morning, prices are lying flat on the oil market.

On the one hand, the market is still supported by the major economic stimulus bill, signed by US President Donald Trump late Sunday night and predicted to have an effect on fuel demand. Similarly, the trade agreement reached between the UK and EU has created some optimism within commodity trading.

On the other hand, however, market worries persist, not least concerning potential consequences of the recent mutated, more infectious strain of Covid-19 first seen in the UK. The new variant has since spread to France and Japan and could result in additional lockdowns. Meanwhile, global infection rates are still on the rise, with hospitals coming under dramatic pressure in multiple areas.

One barrel of European reference oil Brent trades Tuesday for USD 51.09 against USD 51.27 at 5 p.m. CET Monday.

US benchmark crude West Texas Intermediate sells concurrently for USD 47.48 relative to USD 48.25.

Tuesday morning, a series of equity indices surge in Asia, where, for instance, the Nikkei index surpassed 27,000 for the first time in 30 years. Reuters writes that this also has a positive effect on the market.

With the outlook to emergency aid to residents being raised from USD 600 to USD 2,000 per adult, the market's appetite for risk is also supported. Nothing is assured thus far, as the higher payout must first pass in the US Senate.

Elsewhere in commodities, one troy ounce of gold sells Tuesday for USD 1,875.86 against USD 1,873.69 Monday, equating to an appreciation of 0.1 percent.

On the market for industrial metals, one tonne of copper is up 0.5 percent to USD 7,869 compared to the otherwise latest price of USD 7,830 recorded on Dec. 24.

English Edit: Daniel Frank Christensen

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