Wednesday, October 27, 2021

Oil firms but still set for weekly loss on demand worries

Must read

imageCommodities1 hour ago (Aug 06, 2021 06:06AM ET)

2/2
(C) Reuters. FILE PHOTO: A gas pump is seen hanging from the ceiling at a petrol station in Seoul June 27, 2011. REUTERS/Jo Yong-Hak

2/2

By Dmitry Zhdannikov

LONDON (Reuters) -Oil prices edged higher on Friday but remained on track for their biggest weekly decline since March on concerns over the impact on fuel demand from travel restrictions to curb the spread of the Delta variant of COVID-19.

Brent crude oil futures were up 39 cents at $71.68 a barrel by 0940 GMT and U.S. West Texas Intermediate (WTI) crude futures rose 39 cents to $69.48, though both contracts have given up 6% this week.

“The price action we see now is really a function of the macro picture,” said Howie Lee, an economist at Singapore bank OCBC. “The Delta variant is now really starting to hit home and you see risk aversion in many markets, not just oil.”

Japan is poised to expand emergency restrictions to more prefectures while China, the world’s second-largest oil consumer, has imposed curbs in some cities and cancelled flights.

“At least 46 cities have advised against travelling and authorities have suspended flights and stopped public transport. This could impact oil demand as it comes towards the end of the summer travel season,” ANZ said in a report.

Daily new COVID-19 cases in the United States have climbed to a six-month high.

However, oil prices gained support from rising tensions between Israel and Iran.

“OPEC+ supply hikes should still leave the market in deficit in 2021,” Bank of America (NYSE:BAC) analysts said.

Oil firms but still set for weekly loss on demand worries

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Latest article

SUBSCRIBE HERE