Breaking News
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Crude Oil Lower; Speculators Cut Longs on Covid Woes

CommoditiesJul 26, 2021 10:16
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Peter Nurse   

Investing.com -- Crude oil prices edged lower Monday as concerns over the rising number of Covid-19 cases globally weigh on sentiment surrounding fuel demand outlook.

By 10 AM ET (1400 GMT), U.S. crude futures traded 0.3% lower at $71.86 a barrel, while the Brent contract fell 0.1% to $73.35.

U.S. Gasoline RBOB Futures were up 0.1% at $2.2640 a gallon.

New Covid-19 cases have been rising in Asia for a few weeks now, but sentiment in the oil market is starting to deteriorate as infections rise in the heavy energy-consuming countries of the west.

The United States will not lift any existing travel restrictions "at this point" due to concerns over the highly transmissible Covid-19 Delta variant and the rising number of U.S. coronavirus cases, Reuters reported Monday, citing a White House official.

Additionally, in Europe, German Chancellor Angela Merkel's chief of staff said on Sunday he fears the number of new coronavirus cases could soar to 100,000 a day in two months or so, while the French parliament on Monday approved a bill requiring the public to obtain a health pass through vaccination in order to enter a number of social venues.

“Any significant reversal of easing in restrictions in parts of Europe and the US would send a fairly bearish signal to the market, particularly when you consider the higher vaccination rates in those regions,” said analysts at ING, in a note.

Concerns that this increase in cases will result in a slower recovery in the services sector prompted Goldman Sachs (NYSE:GS) to cut its U.S. economic growth forecast for the remainder of the year on Monday. The influential bank dropped its growth forecast for both of the final two quarters of the year by 1 percentage point each, to 8.5% and 5.0% respectively.

Also of interest is the latest position data, with speculators reducing their net long positions in both the ICE (NYSE:ICE) Brent and NYMEX WTI contracts over the last reporting week. 

They cut their net long positions in ICE Brent by 50,786 lots to leave them with a net long of 261,841 lots, the smallest position since late May. The move was even larger for WTI, with speculators reducing their net long by 64,702 lots, leaving them with a net long of 316,789 lots, the smallest position speculators have held since November last year.

 

Crude Oil Lower; Speculators Cut Longs on Covid Woes
 

Related Articles

Oil dips as U.S. storm-hit supply makes slow return
Oil dips as U.S. storm-hit supply makes slow return By Reuters - Sep 17, 2021

By Roslan Khasawneh SINGAPORE (Reuters) -Oil prices fell on Friday as more supply came back online in the U.S. Gulf of Mexico following two hurricanes, but both benchmark...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
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.
Continue with Google
or
Sign up with Email