Oil Price rises over the weekend – the “Everything will be fine” Rally

Eine Öl Pumpe in der Wüste

The Oil price has continued to rise from Friday evening until today. From levels around 40.20 Dollars in WTI oil it went up today to 41.04 Dollars at its peak. Currently, the Oil price is trading at 40.66 Dollars. In the chart, which shows the course of the price over the last 30 days, one can see small, but on balance constant increases from the price level of 39 Dollars since June 29th until today.

Everything will be fine, even with Oil prices?

Is everything gonna be okay? Well, today Asia is pushing everything else up. In China, the world is back to normal after the corona crisis. The Shanghai Composite Index was up 5.7 percent today. The Dax is not being asked twice and is up 1.9 percent. The Dow Jones is trading a good 350 points higher after the long holiday weekend in the USA. And yes, where the economic mood is good, at least on the stock market, the Oil price can also continue to rise? Who cares that the corona infection figures in the USA are getting worse and worse? The fact that the number of active Oil drilling rigs in the USA has been reduced from 188 to 185 recently also helps the Oil market – a record low!

Be aware of too much good mood

We think: The market remains vulnerable to sudden negative events. Especially if in the afternoon new daily horror reports about new corona infections come from Texas, Florida or elsewhere (as they did last week). The mood on the stock market can change quickly. And besides the Stock prices, the Oil price can also drop. Also today at 4 pm the ISM data from the USA may move the market. Tomorrow and Wednesday the inventory data in the USA will be back on the agenda, which can give the market a clear impulse again.

Der Chart zeigt den Ölpreis-Verlauf der letzten 30 Tage
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