U.S. West Texas Intermediate crude oil futures fell nearly 5% early on Friday after President Donald Trump tested positive for COVID-19 and negotiators failed to agree on a U.S. fiscal stimulus package designed to save the economy by speeding along the recovery. Meanwhile, new data from OPEC showed that rising global output threatens to destroy the weak price recovery.
Trump Tests Positive for COVID-19
The catalyst for the move is the news that President Trump had contracted COVID-19. The news triggered a volatile move in the financial markets and thrust COVID-19 back into the spotlight for investors.
The White House announcement is expected to heighten existing political uncertainty around the U.S. election on November 3, another major risk event for markets. Jeff Henriksen, co-founder, and CEO of Thorpe Abbotts Capital called the president’s positive test a “game-changer” for market behavior in the short term.
House passes $2.2 Trillion Democratic Coronavirus Stimulus Bill
In a symbolic move, the House passed a $2.2 trillion Democratic coronavirus stimulus plan on Thursday night even as Democrats and the Trump administration struggle to strike a relief deal.
The bill likely will not get through the Republican-held Senate and become law. Senate Majority Leader Mitch McConnell has opposed the legislation as his caucus resists spending trillions more on the federal response to the pandemic.
The House Democrats did…