Bloomberg Agency said that oil is set for the largest weekly loss since early April, with the return of the outbreak of the Corona virus, Covid-19.
The site said New York futures fluctuated between gains and losses on Friday but fell by about 3.4% this week.
The rapidly spreading delta mutator is causing renewed restrictions on movement around the world.
The United Kingdom is considering stricter measures due to the increase in the number of cases, Singapore is closing hundreds of nightlife venues, and in the United States, the wearing of masks has been re-imposed in Los Angeles County.
At the same time, crude markets face the prospect of additional supplies from the OPEC+ alliance, as the United Arab Emirates and Saudi Arabia work to repair a rift that has hampered the group’s decision-making process.
The dollar’s rally also weakened the attractiveness of commodities priced in the US currency this week.
“It was one blow to the petroleum complex this week: the compromise agreement between OPEC + and the United Arab Emirates,” the agency said.
John Kilduff, partner at Again Capital LLC, indicated that more supply will be forthcoming in the market. “The other factor is the impact of the COVID-19 delta variable, which is a threat to the pace of demand recovery.”
Crude oil is up about 13% over the past three months
Despite the pullback, crude oil is up about 13% over the past three months as the rollout of a global vaccine helped restore economic activity.
Forecasters from the IEA expect Citigroup Inc. The market will get tighter in the coming months.
However, concerns about demand in the near term caused the weakness of the US crude price structure. While there is still a premium on the more urgent contracts – a condition known as a downturn which indicates a lack of supply – it has slipped significantly on some parts of the forward curve. The spot premium was just 26 cents a barrel on Friday, from 75 cents a week earlier.
- West Texas Intermediate for August delivery rose 42 cents to $72.07 a barrel at 12:08 pm. on the New York Mercantile Exchange.
- Brent crude for September settlement rose 36 cents to $73.83 on the ICE European Futures Exchange.
- Futures are down about 2.3% this week, set for a third weekly loss.
- Brent crude’s rapid spread was at 63 cents in lag, compared to 81 cents in the previous week.
Traders are waiting for a meeting to be scheduled between OPEC + producers, after indications earlier this week of progress between the UAE and Saudi Arabia in resolving the crisis.
Last week, OPEC and its allies were forced to abandon an initial deal to boost oil production in monthly installments of 400,000 barrels per day due to last-minute objections from the UAE.
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