The Petroleum Fund has put the corona crisis behind it and passed the record value from February. On Thursday, the fund’s value was up to about NOK 10,840 billion.
It shows the unofficial counter on the fund’s website.
The rise comes, among other things, after a weakening of the krone. A weaker krone increases the fund’s krone value.
Shortly after the fund reached its record value, the value decreased by a few tens of billions. The value of the fund fluctuates in line with exchange rates and the world’s stock markets, and can vary greatly from day to day.
In February, the value of the Oil Fund passed 10.8 trillion, which was a new record. But in March, the corona crisis came and gave a real bang in the markets.
It also led to a proper roller coaster for the Oil Fund:
- At its worst in March, the fund’s value was down to about NOK 9.3 trillion, after stock market declines worldwide
- Two days later, the fund’s value had risen to $ 10.5 trillion, following dramatic currency movements that sent the krone to its weakest levels ever.
Since then, the corona crisis has ravaged many economies, while a number of central banks have cut interest rates and many countries have spent huge sums on sustaining economic activity and avoiding a total crisis.
This stimulus has contributed to keeping the stock markets up, and to the Oil Fund largely staying above NOK 10,000 billion. Now the weak krone and rising stock markets have helped lift the fund to a new record value.
On Thursday, the fund passed the level from February by a good margin. At most, the fund was up to NOK 10,840 billion.
Tangen’s first report
Earlier on Thursday, the Petroleum Fund presented figures for the third quarter of the year, which showed a return of 4.3 per cent, corresponding to NOK 412 billion.
The fund had a negative return in the first half of the year, but by the end of the third quarter it had recovered what it had lost after the corona crisis. At the end of September, the fund had a total positive return of NOK 224 billion this year.
– The financial markets were still characterized by uncertainty related to the coronavirus. Nevertheless, the stock markets gave good returns in the quarter. In particular, the upturn was driven by American technology companies, said the Petroleum Fund’s CEO Nicolai Tangen in a statement on Thursday.
The Petroleum Fund with a return of 4.3 per cent in the third quarter