July 23, 2021

Oil Prices Show Recovery

 Crude oil traded steady as the market headed over the weekend, having recovered from a drastic fall on Monday caused by the OPEC+ decision and concerns over an increase in coronavirus cases.

Brent crude futures remained stable at $ 73.48 a barrel despite a slight decline, while US WTI traded at $ 71.60 a barrel.

Recounting events that took place earlier in the week, OPEC+ has agreed to increase crude oil production by 400,000 barrels from August to December 2021.

This has prompted investors ’concerns over an increase in supply in the crude oil market, especially as the world is threatened by a new contagion of the volatile Delta variant.

Following that, both oil price benchmarks fell below the $ 70 a barrel price level before rebounding on Tuesday.

However, the recovery recorded was relatively limited due to the increase exhibited in U.S. crude oil supplies last week, causing investors to worry about fuel demand that may continue to be affected by the resurgence of Covid cases in the country.

On Thursday, the Centers for Disease Control and Prevention (CDC) reported that delta variants have accounted for more than 83% of new cases in the U.S. Some hospitals have also reached their capacity to accommodate patients, especially in areas with low vaccination rates.