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March 22, 2021

The Winding Road Oil Trade

 Black commodity trading continued to be under pressure following concerns over the reduction in global fuel demand caused by the lockdown in Europe.

In the Asian session, Brent crude futures fell 37 cents to $ 64.16 a barrel, while US WTI traded lower to around $ 61 a barrel.

Most recently, Germany was reportedly planning to extend restrictions to curb the spread of Covid-19 until the fifth month, after new cases were recorded at alarming levels.

Meanwhile in the UK, vaccine launches continue to go well, but Prime Minister Boris Johnson also plans to extend sanctions until October compared to June previously estimated.

Even so, data from around the world shows a steady albeit insignificant recovery in demand.

Global oil demand, which plunged by 30% during the worst epidemic closures in March and April 2020, has now returned to around 95% from the highest level before Covid hit, according to the International Energy Agency.

With the addition of aggressive output cuts from OPEC+, it has helped raise prices by more than 20% this year, although oil price movements have been relatively limited since last week.