• 5 minutes Covid-19 logarithmic growth
  • 8 minutes Why Trump Is Right to Re-Open the Economy
  • 12 minutes Charts of COVID-19 Fatality Rate by Age and Sex
  • 14 minutes China Takes Axe To Alternative Energy Funding, Slashing Subsidies For Solar And Wind
  • 54 mins Which producers will shut in first?
  • 5 hours How to Create a Pandemic
  • 14 mins TRUMP pushing Hydroxychloroquine + Zpak therapy forward despite FDA conservative approach. As he reasons, "What have we got to lose ?"
  • 7 hours KSA taking Missiles from ?
  • 7 hours There are 4 major mfg of hydroxychloroquine in the world. China, Germany, India and Israel. Germany and India are hoarding production and blocked exports to the United States. China not shipping any , don't know their policy.
  • 7 hours A New Solar-Panel Plant Could Have Capacity to Meet Half of Global Demand
  • 6 hours Trump eyes massive expulsion of suspected Chinese spies
  • 2 hours WE have a suicidal player in the energy industry
  • 2 hours Eight Billion Dollars Wasted on Nuclear Storage Plant
  • 7 hours Breaking News - Strategic Strikes on Chinese Troll Farms
  • 21 hours Today 127 new cases in US, 99 in China, 778 in Italy
Alt Text

Refiners Are Having To Pay To Produce Gasoline

As the challenges continue to…

Alt Text

COVID-19 In A Civil War

Why Haftar Isn’t Going to…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Oil Jumps As Fed Pledges “Unlimited” Cash To Bolster The Economy

Oil prices jumped by 4 percent early on Tuesday after the U.S. Federal Reserve launched on Monday extensive new measures to support the economy as the coronavirus pandemic spreads.

But prices slid later in the morning.

At 9:34 a.m. EDT on Tuesday, WTI Crude was up 3.98 percent on the day at $24.41, and Brent Crude was trading above the $30 a barrel mark, at $30.47, up by 3.86 percent.

By 11:11 a.m, WTI had fallen to $23.32, down 0.17% over Monday.

On Monday, the Federal Reserve on Monday said it was “committed to using its full range of tools to support households, businesses, and the U.S. economy overall in this challenging time.”

The Fed is establishing facilities to support credit to companies, including by buying on the secondary market a) corporate bonds issued by investment-grade U.S. companies, and b) facilities to ease the flow of credit to consumers, businesses, and municipalities.

The Fed's 'unlimited' bond buying plan has caused markets to rally, but analysts remain cautious as several other attempts to prop up the market have not resulted in a sustainable recovery.

“The oil market found some support yesterday and this has continued this morning, following the US Fed taking further action to cushion the economic fallout from the Covid-19 virus,” ING strategists Warren Patterson and Wenyu Yao said on Tuesday.

Oil prices received some additional support thanks to growing speculation that the U.S. and Saudi Arabia are talking about some form of cooperation to support oil prices.

A U.S.-Saudi coalition is one of the ideas floating around, U.S. Energy Secretary Dan Brouillette told Bloomberg Television in an interview on Monday, after reports started suggesting that an alliance may be in the works. Related: API Asks Trump For Help

Last week, U.S. President Donald Trump said that “at the appropriate time, I’ll get involved” in the Saudi Arabia-Russia oil price war.

Texas Railroad Commissioner Ryan Sitton spoke with OPEC’s Secretary General Mohammad Barkindo on Friday and tweeted that “we all agree an international deal must get done to ensure economic stability as we recover from COVID-19. He was kind enough to invite me to the next OPEC meeting in June.”

“Meanwhile growing noise around a potential US-Saudi oil alliance has only provided further support to the market. For now, though, an alliance between the two does seem like a pipe-dream,” ING strategists said.

Other analysts, including Eugen Weinberg at Commerzbank, told Reuters on Tuesday that “It is highly questionable whether the good mood will continue on the oil market,” given the double supply and demand shock.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage






Leave a comment
  • Bill Simpson on March 24 2020 said:
    We have to thank the fellow who invented the shipping container which enabled globalization, and the Asian labor, the combination of which, allow the creation of money out of thin air, without causing ruinous inflation.
    I suspect that won't last too much longer.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News