Brent Crude Oil has jumped some 40% from $26 to $36 to then ‘plunge’ to $28, now at $30 but moving with some considerable speed.
WTI Oil is up some 26% too with huge volatility returning to the oil market this Thursday.
Main reason is probably because US President Donald Trump will meet with U.S. oil executives to discuss possible financial assistance for the industry and tariffs on oil imports from Saudi Arabia, according to the Wall Street Journal.
That follows a filing for bankruptcy by a big American oil producer with that $2 trillion bill not having much to say about oil.
That is clearly changing now with the suggestion of tariffs on Saudis making for some potentially very interesting US-Saudi meetings. Trump said:
“Just spoke to my friend MBS (Crown Prince) of Saudi Arabia, who spoke with President Putin of Russia, & I expect & hope that they will be cutting back approximately 10 Million Barrels, and maybe substantially more which, if it happens, will be GREAT for the oil & gas industry!”
Trump said a few weeks ago that he was pilling up on oil because it was at a very good price. Now he’s made the price jump, but another potential reason why oil was slowly rising even before this may be because China is now in full swing.
People are going out there as normal, with the factories humming like nothing.
As the world’s third biggest economy after US and EU, China’s $13 trillion GDP needs a lot of oil, hence some rise in demand.
Bitcoin, eth and other cryptos are also rising again perhaps some international commerce is getting back towards some normality.
Bitcoin especially is used for international transfers because it’s very quick and cheap, so can cut processes to just ten minutes instead of waiting a week or even a month for fiat to travel through banks.
We suspect this is particularly used towards buying or selling from China in part because China has capital controls, but as with most things mainly for the plebs.
They’ve closed crypto exchanges, but again it’s more a ‘closed.’ So with them returning to normal, bitcoin maybe should start slowly getting back to normal too.
Stocks are up the usual one point something percent with the western economy still in the middle of this, but maybe there’s now some reason for optimism as it appears there is a way out of this crisis.