This is the factor that drives oil prices to decline - Kakiforex.com - Financial Market Media No. 1 in the World This is the factor that drives oil prices to decline This is the factor that drives oil prices to decline
InstaForex

June 29, 2021

This is the factor that drives oil prices to decline

 Oil prices eased slightly amid concerns that the widespread contagion of the Delta Covid-19 variant would slow the recovery in global fuel demand.


The Delta variant outbreak, continued to spread rapidly in Asia and Europe forcing several additional restrictive measures to be implemented to curb the spread.


This caused market expectations to see increased demand in the summer to falter.



Spain and Portugal, favorite summer holiday destinations for Europeans, imposed new restrictions on unvaccinated Britons on Monday, while 80% of Australians faced tighter restrictions after Perth announced a four -day closure.


Meanwhile, a meeting of members of the Organization of the Petroleum Exporting Countries (OPEC) and its ally, OPEC+ on July 1 also influenced sentiment in the crude oil market.


Ahead of the meeting, OPEC has released a forecast showing a decline in oil supplies in August and until the end of 2021. This indicates that the group has room to increase production at this week’s meeting.


Brent crude futures traded around $ 74 a barrel at the start of the European session, while US WTI traded lower at $ 72 a barrel.