Oil prices fell below 0.3 percent on Monday, December 28, in the face of ongoing worries about the worsening of the global health situation due to the outbreak of a new strain of coronavirus. Around the same moment, a good aspect for all volatile investments was the announcement that US President Donald Trump signed a $2.3 trillion budget for 2021, which included a $900 billion fiscal incentive package.
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WTI crude futures traded down 0.15 percent to finish at $48.16 at the end of the day in February, while February Brent crude futures fell -0.25 percent to $51.21.
The world’s adverse pandemic scenario tends to place pressure on the price of oil. So, in 10 countries, including Canada, Germany, France, Australia and South Korea, a new strain of coronavirus, recently detected in the UK, has also been detected.
Many countries have suspended air travel with the United Kingdom in this respect, and it is difficult to preclude in the future the continuation of restrictions on airlines, depending on the geography of the delivery of that burden. As a consequence, this could have a detrimental effect on overall oil production.
Around the same time, news of the signing of the US President’s tax stimulus bill for the US economy is beneficial to a wide variety of volatile assets, including gasoline, which could raise oil prices in the future. The House of Representatives, with a Democratic majority, was waiting on Monday to vote on a bill that would increase checks from $600 to $2,000. However, legislative procedure requires a two-thirds majority, which, without the participation of many Republican elected representatives, would be impossible to obtain. And even though the bill crosses the stage in the assembly, as there were risks of the Republican-dominated Senate opposing it.
On Monday, gold rates fell marginally by -0.1 percent and were at $1880.40 per troy ounce.