Oil Ends Higher on Storm, Reduced Covid Fears — Market Talk

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October 28, 2020

Oil Ends Higher on Storm, Reduced Covid Fears — Market Talk

WTI oil prices end 2.6% higher at $39.57 a barrel, recouping nearly all of Monday’s declines as a tropical storm causes offshore oil producers to slash production, and as investors bet the US economy could keep improving despite a recent increase in coronavirus cases. With Tropical Storm Zeta heading straight toward production platforms in the Gulf of Mexico, government data today shows offshore output was cut by 49% or 915k bpd. Peter Cardillo at Spartan Capital says prices were also supported by some forecasts for a decline in weekly US oil inventories, and also by the view that despite a worrisome rise in US coronavirus cases, a widespread reimposition of demand-destroying lockdowns seems unlikely.