Portal partners
Oil prices in the US have been rising after the biggest sale since September
Author:Mariusz Dasiewicz
Oil on the U.S. fuel exchange goes up, while on Monday its price recorded the largest drop since September 2020. However, analysts expect that low supply of raw material can lead to higher prices. The price of copper was also low.
West Texas Intermediate oil supply for August at the NYMEX fuel exchange in New York City costs US$67.33, higher by 1.04 percent. WTI price dropped by 7.5% during the previous session – the most in almost a year.
Oil Brent in deliveries for September on the ICE Futures Europe fuel exchange in London is valued at $69.50 per barrel, higher by 1.25 percent. On Monday, Brent's price went down by 6.8 percent, which was the biggest drop since March. Brent has been at the lowest level since May.
"In the short term there is still a likelihood of significant declines. In the long term, the Delta variant can slow the global recovery," said Jeffrey Halley, an analyst from Oanda Asia Pacific.
"The sale was largely due to concerns focused on the Delta variant and the macro environment, rather than rethinking the prospects for the oil market's foundations," they assessed in the RBC Capital Markets report.
RBC analysts pointed out that high-frequency indicators showed that reservations at restaurants for the weekend in the United States, the world's largest oil consumer, were at pre-pandemic levels, while domestic flights have been at the highest level since the start of the pandemic.
The Organisation of Petroleum Exporting Countries (OPEC) and its non-OPEC allies reached an agreement on Sunday to increase their extraction by 400,000 barrels a day from August.
At the Sunday meeting of the Ministers of the Member States of the Organisation of Petroleum Exporting Countries (OPEC) and the cooperating countries (OPEC plus), it was also decided to increase the mining limits set for Iraq, Kuwait, Russia, Saudi Arabia and the United Arab Emirates.
Copper on the metal exchange in London in 3-month deliveries grows by 0.5% to US$9.268 per tonne.
"Aversion to risk dominates the market as uncertainty about the prospects for global growth has increased. Meanwhile, copper prices may be under pressure because China is preparing to release another batch of metal reserves" – says Jinrui Futures report.
Source: PAP
