Coronavirus Fears, Recovery Hopes, Continue to Whipsaw Crude Oil Prices
Crude oil prices are on the rise on Nov. 3, with both West Texas Intermediate and Brent crude futures up more than 2%. Oil prices are rising today along with equity markets, with the S&P 500 and Dow Jones Industrial Average up more than 1.6%, as some market speculators bet on a Democratic sweep of the U.S. Presidency and both houses of Congress that would likely lead to a substantial economic stimulus package. Economic stimulus would help the U.S. avoid a potential "double-dip" recession, as cases of COVID-19 move sharply higher heading into the autumn.
For oil, the move higher today is a bet on a source of stimulus that could prove of little benefit to oil prices. The U.S. is one of the biggest oil consumers in the world, but COVID-19 cases are on the rise around the world.
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Source Fool.com
