Oil prices stabilized today Wednesday after a two-day drop as investors assessed the demand outlook that was clouded by the resumption of the Covid-19 outbreak in many regions.
US West Texas Intermediate crude futures traded above $ 68 a barrel in New York after falling more than 2% in the past two sessions. Brent, the international benchmark, is stable below 72 dollars a barrel.
While in some regions, including Europe, are emerging pockets of high demand, the delta variant of the virus in rapid spread led to renewed blockades in other regions of the world. The strengthening of the dollar has also made materials more expensive prime valued in the US currency.
Oil fell below the media mobile 100-day, while the gap has widened above the 50-day indicator, a bearish sign that could see further selling.
The sharp rise in oil from the depths of the epidemic was halted, as the spread of the delta reduced fuel consumption. However, China, the world’s largest oil importer, has managed to contain the outbreak of the changing virus and there are expectations that the market will shrink until the end of the year.
“The business of trading reflects continued uncertainty about price direction, “Vandana Hari, founder of Vanda Insights in Singapore, told Bloomberg.” I expect a modest recovery is imminent, but we may have to wait for momentum, for example, from US stock data . . ” weekly”.
COVID-19 infections have soared in a year in Singapore and the country does not rule out the reintroduction of restrictions, while the Philippines backtracked on easing restrictions in the capital region. In the United States, the corona death toll has exceeded 650,000, although three-quarters of adults have now received at least one dose of the vaccine.
On the other hand, Thursday’s market will take a quick look at the impact of Hurricane Ida on US equities. According to a Bloomberg poll, gasoline inventories likely fell by 3.7 million barrels last week. This would be the largest drawdown in five weeks if confirmed by official data.
Crude oil supplies are expected to decline by 6 million barrels.
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