WEEKLY ENERGY RECAP: Physical oil market witnesses strong buying ahead of summer arabnews.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from arabnews.com Daily Mail and Mail on Sunday newspapers.
The upward momentum in oil prices continues. On the week closing, Brent crude rose to $68.28 per barrel, and has not been able to penetrate the $70 mark for 17 months. West Texas Intermediate (WTI) rose to $64.90 per barrel. Oil’s optimistic demand outlook overshadows falling demand in China and India, but could not offset the strong US manufacturing activity that has
Oil prices rose to a six-week high amid bullish oil demand and a positive outlook for the US economy, despite fears the recovery demand will be impacted by the resurgence of coronavirus infections in India. A weak dollar, which was pinned near nine-week lows, also lent some support to oil prices.
On the week closing, Brent crude price rose to $67.25 per barrel and West Texas Intermediate (WTI) rose to $63.58 per barrel.
At their latest monthly meeting, OPEC+ producers decided to maintain their existing plans to boost oil output gradually by easing production output cuts but this did not impact oil prices, signaling the group’s confidence in the demand outlook and that they do not see any lasting impact from India’s coronavirus crisis.
Oil market torn between news from India, China
Oil prices retreated slightly from the one-month high of the previous week and made a slight weekly drop.
On the week closing, Brent crude price deteriorated to $66.11 per barrel and West Texas Intermediate (WTI) declined to $62.14 per barrel. Both benchmarks made a weekly loss of less than $1.
Oil prices are still being influenced by COVID-19 worries and an uncertain oil demand recovery, even though commercial oil inventories across the Organization for Economic Co-operation and Development (OECD) countries are already back down to their five-year average.
The market is torn between confusing news from the second and the third-largest oil consumers: China and India.
Energy Recap: Oil Markets Retreat over News from India, China Published April 25th, 2021 - 11:00 GMT
Thus, it is interesting to see the disconnect between oil price movement and the reduction in speculative activities in the previous weeks, as investors decided to cash-in despite oil price raising. (Shutterstock)
Highlights
It is interesting to see the disconnect between oil price movement and the reduction in speculative activities in the previous weeks
Oil prices retreated slightly from the one-month high of the previous week and made a slight weekly drop.
Also Read
On the week closing, Brent crude price deteriorated to $66.11 per barrel and West Texas Intermediate (WTI) declined to $62.14 per barrel. Both benchmarks made a weekly loss of less than $1.