The conflict on the oil market might just be starting. After Saudi Arabia announced its first output increase in four years this weekend, today an even bigger increase was revealed. As a result, oil prices are decreasing. The Brent crude today is trading near $36.05, while the WTI brand reached $33.27 per barrel.
The coronavirus still remains a threat. Though US President Donald Trump has failed to take action so far, previously dismissing the disease as a Democrat hoax, the government is pushing ahead with its own stimulus plan. The efforts are spearheaded by House Speaker Nancy Pelosi (Dem.), who is working with the US Treasury Office.
There is no official data from the CDC regarding the virus, but the latest estimates put the number of US cases at over 1,000. The cases in China and South Korea are dropping, while in Italy they surpassed 10,000. The disease is on the rise in other European countries as well.
Market sentiment improved in the United Kingdom, after the Bank of England opted to cut interest rates by 0.5% in order to shield the economy from the coronavirus damage. Interestingly, when the Federal Reserve did the same, the USD dropped in value, while the pound is strengthening after the Bank of England’s cuts.
Back in the United States, after another Tuesday of preliminary votes, Joe Biden extended his lead ahead of Bernie Sanders, making him ever more likely to win the nomination and get the chance to run against Trump in November. Bernie Sanders might opt out of the race soon based on how things are going.
