WTI Crude Oil Bounces Beck as Trump Returns to White House

Early on Tuesday, WTI crude oil prices are trading somewhat bullish, encouraged by reports of Trump returning to the White House after being discharged from the hospital for COVID-19 treatment, even as the Gulf of Mexico gears up for another storm. At the time of writing, WTI crude oil is trading at around $39.43 per barrel.

On Friday, crude oil had crashed because of political uncertainty when it was confirmed that Trump and his wife had tested positive for coronavirus. However, they recovered the losses and strengthened by over 5% during the previous session, supported by his return to the White House and increasing hopes for a fresh round of fiscal stimulus in the US.

WTI oil is also enjoying support ahead of Tropical Storm Delta which is expected to hit Louisiana and Florida. In addition, the supply side of crude oil is also coming under pressure due to a workers’ strike in Norway, which could take down around 330k bpd of oil output.

Later today, WTI crude oil prices could be impacted by the release of the API crude oil inventories report. Expectations are for an increase of 400k barrels in crude stockpiles while distillate stockpiles could register a decline by 1.4 million barrels for the previous week.