Monday, October 18, 2021

Oil Down, Surge in COVID-19 Cases Globally Continues to Threaten Fuel Demand

Must read

imageCommodities2 hours ago (Aug 16, 2021 12:40AM ET)

(C) Reuters.

By Gina Lee – Oil fell on Monday morning in Asia, falling more than 1% and dropping below the $70 mark. Concerns remained that the restrictive measures currently in place to curb the latest COVID-19 outbreaks would continue to dampen the fuel demand outlook.

Brent oil futures fell 1.06% to $69.84 by 12:36 AM ET (4:36 AM GMT) after edging lower during the previous week. WTI futures slid 1.11% to $67.45 after recording a slight rise last week. WTI futures also rolled over to the Oct 21 contract on Aug. 15.

“Crude oil remained under pressure as the fast-spreading Delta variant of COVID-19 casts a cloud over the outlook for demand,” ANZ Research analysts said in a note.

Data released in China earlier in the day said industrial production rose 6.4% year-on-year in July, and retail sales grew 8.5% year-on-year in the same month, both lower than expected. A recent tightening of restrictive measures due to the latest COVID-19 outbreak was a likely contributor to the disappointing data from the world’s top oil importer.

In neighboring Japan, the GDP grew 0.3% quarter-on-quarter and 1.3% year-on-year in the second quarter. The figures come despite parts of the country remaining under a state of emergency to curb the latest outbreak in the country.

The darkening fuel demand outlook fits the International Energy Agency’s grim prediction during the previous week that demand would rise at a slower rate for the remainder of 2021, after reversing its trend upwards in July due to COVID-19 outbreaks involving the Delta variant globally.

Oil Down, Surge in COVID-19 Cases Globally Continues to Threaten Fuel Demand

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