The COVID-19 may be severely impacting the global economy and therefore the markets at this time – but it appears it doesn’t necessarily have to have the last say. We’ve been closely monitoring the coronavirus and oil correlation since the outbreak began, and just now as the situation took a turn for the worst, oil prices plummeted, just as many other markets did.
Yet this Thursday, the oil chart analysis found an ally in US President Donald Trump. President Trump’s announcement of interfering in the global price war had a shocking turnaround effect on the oil price analysis. And as a result, the oil price chart surged a whopping 24% just in that one day!
Of course, so far the oil price in March 2020 is still down a very significant 60% in the wake of the global pandemic. But this rise in the oil chart, even from a statement as vague as Trump’s, has proven to be a welcome one. According to the statement, he would get involved in the oil price war that’s been ongoing between Russia and Saudi Arabia “at the appropriate time”.
What further contributed to update oil price was also the government’s decision to take advantage of the extremely low price and fill up the Strategic Petroleum Reserve. A 30-million-barrel commitment has already been made for American oil, which may have its impact on the remaining oil price chart analysis in March 2020. And currently Congress is in the process of finalizing the funding necessary for the entire purchase, which is a total of 77 million barrels.
Watch the full video for our take on the oil price forecast and let us know what you think in the comments.
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