The demonstrations seen in Washington had little impact on the oil price, generating a quick fall to $49.50 for the WTI benchmark, which was easily absorbed by the markets. The price has since jumped strongly back above $50 and in the first few hours this morning continued the recovery, reaching $51 while Brent is approaching the $55 threshold. This sharp spike for oil is supported by the strong risk on scenario which has dominated markets in the last few days. Investors are betting on further price gains thanks to both a recovery of global oil demand in Q1 and Q2 2021 and to the production cuts decided by Saudi Arabia after the meeting of OPEC+.
Moreover, news of the victory of Joe Biden in Georgia – which will give him the control of the Senate – strengthens expectations for further fiscal stimulus.