August 18, 2021

Oil Prices Caught Amid Market Gloom

 Crude oil prices continued to trade lower despite displaying a slight rise in the Asian session, amid market uncertainty over the outlook for fuel demand that may be affected by the implementation of coronavirus blockade measures.

Brent crude futures were stable at $ 69.25 a barrel, after declining 0.7% on Tuesday. While US WTI trading was up slightly at $ 66.56 a barrel, it stabilized after falling 1% in the previous session.

Uncertainty about the outlook for global fuel demand is once again plaguing markets, especially after New Zealand announced tighter shutdown measures across the country on Tuesday.

Seven more cases of Covid-19 have been detected in the community today in the country, of which it is reported as a Delta variant. This has caused the market to worry about the possibility of restrictions being extended if cases of infection continue to rise.

Meanwhile in China, daily crude oil processing was reported to have fallen to its lowest level since May 2020, in July as independent distilleries reduced production following tighter money quotas, high inventories and weak profits.

Meanwhile, the stronger value of the US dollar also affected trading in the black commodity, making oil prices more expensive for holders of other major currencies.