• Tuesday, Jul 05, 2022
  • Last Update : 04:24 pm

Oil steadies, Delta outbreaks cloud demand prospects

  • Published at 05:32 pm August 18th, 2021
oil
A gas pump at a petrol station in Seoul June 27, 2011 Reuters

Crude is typically priced in dollars so a stronger greenback makes oil more expensive, hitting demand

Oil prices steadied on Wednesday after four days of declines with investors still worried about the outlook for fuel demand as the use of rail, air and other forms of transport remained constrained amid surging Covid-19 cases worldwide.

Brent crude was up 70 cents or 1% at $69.73 a barrel by 0649 GMT. US oil gained 54 cents or 0.8% to $67.13 a barrel.

"In the short-term, the oil market may be volatile with frequent pull-backs as crude prices are beginning to struggle as demand in Europe and India faces headwinds," said Avtar Sandu, senior manager, commodities at Phillip Futures in Singapore.

A stronger dollar was also hitting commodities across the board, with metals and precious gold in particular as "equally fragile" as oil, ANZ Research said in a note.

Crude is typically priced in dollars so a stronger greenback makes oil more expensive, hitting demand.

In the United States, more supply is set to hit the market if official forecasts prove right.

US shale oil production is expected to rise to 8.1 million barrels per day (bpd) in September, the highest since April 2020, according to the government's Energy Information Administration's monthly drilling output report.

US crude oil and gasoline inventories fell last week, according to two market sources, citing American Petroleum Institute figures on Tuesday, while distillate stocks rose.

Financial markets overall are turning sour in response to the Delta variant's progress, softer US economic data, and a sombre reflection on what is going on in Afghanistan, ING analysts said in a note.

50
Facebook 50
blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail