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

Oil Down, Increasing COVID-19 Cases Continue to Dampen Fuel Demand Outlook

CommoditiesJul 26, 2021 01:38
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Gina Lee

Investing.com – Oil was down Monday morning in Asia but remained little changed even as increasing numbers of COVID-19 cases globally continue to cloud the fuel demand outlook.

Brent oil futures fell 1.16% to $72.59 by 1:31 AM ET (5:31 AM GMT) after rolling over to the Oct. 21 contract on Jul. 25, 2021. WTI futures slid 1.25% to $71.17.

“We saw an overreaction in the market last Monday, and like all other technical corrections so far oil’s downturn has typically proven short lived... bargain hunters came in droves when Brent got below $70 and the economic demand for energy looks robust,” OCBC Bank economist Howie Lee told CNBC.

However, rising numbers of COVID-19 cases involving the Delta variant have prompted countries such as Thailand and Vietnam to impose curfews, while the possibility of tougher restrictions for those unvaccinated has been floated in Germany.

U.S. White House medical advisor Anthony Fauci also warned that the nation is moving in the “wrong direction” in dealing with its latest wave of COVID-19 cases.

China, a major crude importer, is dealing with increasing number of COVID-19 cases alongside recent severe flooding in parts of the country. Beijing is also cracking down on the misuse of import quotas, which, combined with higher crude prices, could see China’s growth in oil imports sink to the lowest in two decades in 2021. However, refining rates are expected to rise in the second half of 2021.

The latest surge in COVID-19 cases coincide with and expected surge in supply from the Organization of the Petroleum Exporting Countries and their allies (OPEC+) starting in August. This could mean a tightening market and choppy waters ahead for the black liquid.

However, talks to revive a 2015 nuclear deal that could add Iranian supplies back to the market have been postponed to August. The U.S. is also considering cracking down on Iranian oil sales to China in preparation for the possibility that the talks will not materialize, or that Iran will take a hard stance if they do.

Meanwhile, U.S. oil rigs rose by seven to 387 during the previous week, their highest since April 2020, Baker Hughes Co. said on Friday.

Oil Down, Increasing COVID-19 Cases Continue to Dampen Fuel Demand Outlook
 

Related Articles

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