Oil posted losses close to $ 69 a barrel on Tuesday as investors assessed demand expectations still clouded by the resurgence of the Covid-19 virus in many regions.
US West Texas Intermediate crude oil futures in New York fell 0.2% from Friday’s close, after trading expected on Monday due to a US holiday, as Brent recovered above $ 72. .
The rapid spread of the delta mutant virus has led to renewed restrictions on circulation in some areas, although there are signs of recovery. China’s trade data for August is expected on Tuesday, which gives an indication of the economic strength of the world’s largest oil importer.
The market has opened in lower on Monday after Saudi Arabia cut crude oil prices in Asia next month more than expected, surprising traders and raising concerns about the near-term demand picture.
Rising oil prices have faced strong headwinds in the past couple of months, after prices rose more than 50% during the first half of the year. And while the delta has reduced demand, there are expectations that the market will shrink for the remainder of 2021. OPEC + is betting the recovery will accelerate and last week agreed to continue increasing supply every month.
On the other hand, European oil demand has rebounded after months of blocking due to the virus, which has led to a significant downsizing of the continent’s refining industry. Delta continues to have an impact in all of Asia, with Singapore once again facing cases in increase.
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