August 23, 2021

Oil Prices Rise Again After Being Hit Hard

 Black commodities returned to stability at the opening of trading earlier in the week after suffering their worst losses last week due to the strength of the US dollar and concerns over Covid-19 would hurt fuel demand.

In the Asian session, Brent crude futures rose 1.7% to $ 65.90 a barrel, after touching the lowest level since May at $ 64.60 a barrel at the start of the previous session.

Meanwhile, US WTI trading also increased 1.7% to $ 63.20 a barrel, after falling to a previous low of $ 61.74 a barrel.

Both benchmarks have posted their biggest weekly losses in more than nine months in the past week, with Brent oil trading down around 8% and WTI down around 9%.

The strong rise in oil prices in the first half of this year, was again hit by a storm following a resurgence of coronavirus outbreaks around the world that have weakened the outlook for global fuel demand.

The next focus of the oil market is a meeting of producing countries and their OPEC+ allies on September 1 which is expected to have them re-evaluate their promise to increase oil production following the coronavirus resurgence that has led to the return of several sanctions measures.