Brent crude oil ended the trading session Monday with a rise of 1.5% to $ 44.88. The quotes were supported by hopes for the end of the global pandemic of coronavirus infection, which will soon allow the full resumption of cross-border air travel, which is considered one of the main indicators of fuel demand.
Earlier, the United States, which for a long time remained the new epicenter of the COVID-19 pandemic, recorded the lowest number of new cases of coronavirus infection in almost a week. In total, more than 5 million cases of infection have been confirmed in the United States. Economists have taken the slowdown in COVID-19 spread as a positive signal, indicating that the region's economic recovery may accelerate.
The oil market was also supported by the decision of US President Donald Trump to sign decrees on new measures of state aid for American households. Executive orders include an extension of extended unemployment benefits, a deferral of student loan payments until 2020, a federal moratorium on evictions, and payroll tax holidays. Investors are now trying to figure out whether lawmakers will be able to challenge these measures or whether the aid will reach recipients. Some also doubt that the proposed measures will be sufficient to mitigate the negative impact on the national economy of the pandemic and quarantine.
Market participants continue to ignore the significant deterioration in US-China relations. On Monday, China took another step in the confrontation in the United States, announcing the imposition of sanctions on 11 American citizens, including Senators Ted Cruz and Marco Rubio. This was a response to similar actions by Washington: on Friday, the US imposed sanctions on officials from Hong Kong and mainland China. The next important event for the oil market will be data on changes in oil reserves from the US Energy Information Administration, which will be released tomorrow. Until then, the growth of quotations may well continue.
#Brent BuyLimit 44.70 TP 45.90 SL 44.30
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