- WTI is trading lower this morning in response to renewed lockdowns in China
- President-elect Joe Biden unveiled a $1.9 trillion stimulus package that aims to jump-start the economy and accelerate the coronavirus vaccine rollout
- Renewed lockdowns in China threaten oil demand growth, as the country has served as a bulwark for oil demand during the pandemic
- President-elect Biden will assume office on January 20, 2020, and will focus his attention on getting the proposed $1.9 trillion stimulus package through congress
- The package includes another stimulus payment of $1,400, to bring the total amount to $2,000 as well as an additional $400 in supplemental unemployment benefits
- The plan also includes funds to be directed towards rolling out the coronavirus vaccine at a rapid pace. The president-elect has said that he plans to have 100 million Americans vaccinated in his first 100 days in office
- China reported its highest number (144 cases) of COVID-19 cases in more than ten months
- The country says it is now treating more than 1,000 people for COVID-19. The new resurgence has prompted the PRC to impose restrictions on 28 million people to mitigate the spread
- The country has begun preparing for the resurgence, even constructing a new quarantine center outside the provincial capital of Shijiazhuang
- AEGIS notes that oil prices have yet to reach solid ground and a significant resurgence in China threatens the recent rally. China has served as a bulwark for oil prices as demand has faltered in other countries around the globe