The current situation on the commodity market regarding oil trading is very favourable for investors who are able to accept a very high level of risk on their investments as the price of oil changes dynamically at the moment. According to analysts, the price of oil on the global commodity market behaves very chaotically and responds very sensitively to every stimulus.
On 27 March 2020, at 12:12 pm CET, the light American oil West Texas Intermediate (WTI) traded on the New York Mercantile Exchange (NYME) commodity market at US$ 22.63 per barrel with a daily price appreciation of +0.13%. In contrast, at the same time its European counterpart, the North Sea oil Brent, fell by -1.03% of the price at US$ 26.07 per barrel on the Intercontinental Exchange Europe (ICE).
Oil prices increased during Friday, 27 March in response to the fact that individual governments all over the world, and especially those with developed economies, promised a huge injection of funds and other measures to limit the economic impact of the coronavirus pandemic despite fears that further widespread outbreaks of the pandemic will de facto destroy oil demand. By 2020, prices have fallen by almost two-thirds and the slump in economic activity and fuel demand has forced a massive resumption of reserve and rescue investments in oil and other energy companies.
Global oil demand may fall by 20% because around three billion people on the planet are in lockdown and a small fraction of them are already infected, said the head of the International Energy Agency, calling on major manufacturers such as Saudi Arabia to help stabilize the oil markets. “It’s going to be a very uncertain year for us from a price point of view,” said Peter Coleman, the head of Australian oil and gas developer Woodside Petroleum on Friday, 27 March during a conference call to investors. The G20 leaders on Thursday, 26 March pledged to provide more than US$ 5 trillion to the global economy to reduce jobs and income losses due to the pandemic and “do everything they can to overcome the pandemic”.