Oil is tanking this morning on the news that President Trump has tested positive for the coronavirus. US and European equities markets are dropping this morning and commodities in the US are falling as well. Crude has been down as much as 4% in early trading this morning.
The news of the President’s infection raises the concerns of a second wave of infections affecting people not only in the US but also in Europe and Asia. If the president of the US can get sick, then who is safe? Some experts believe a second wave of coronavirus cases will coincide with the upcoming flu season to create a problem for an over-extended hospital system in the US. Others think that due to current wearing masks protocols and social distancing that had not been in place last flu season, that this flu season may be milder in comparison.
If the US sees a spike in coronavirus infections in the coming winter months, we can expect the continuation of social distancing protocols and a likely second wave of lockdowns affecting public meeting places such as restaurants and churches. Only recently in many states have the restrictions on meeting places begun to be relaxed. These lockdowns will continue to put pressure on demand for diesel and gasoline during an already lower demand season.
Crude prices are down this morning. WTI Crude is trading at $37.01, a loss of $1.71.
Fuel is down in early trading this morning. Diesel is trading at $1.0782, a loss of 4.7 cents. Gasoline is trading at $1.1039, a decrease of 4.9 cents.