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U.S. oil prices down after two-day increases, strongest since XI 2020
Author:Mariusz Dasiewicz
Oil prices on the New York fuel exchange have returned to declines, after a 2-day strongest increase in quotations since November 2020 Markets are again concerned about the rapid spread of the new variant The coronavirus Delta, which could negatively affect the demand for fuel in the world. The increasing US dollar, for the first time in three sessions, also has a negative impact on Wednesday's purchasing decisions of investors in the fuel markets," said brokers.
West Texas Intermediate oil supply for October at the NYMEX fuel exchange in New York City costs US$67.17, below 0.55%.
Oil Brent in deliveries for October at ICE Futures Europe in London costs US$70.71 per barrel, down 0.48%.
Analysts point out that although no new local cases of coronavirus infection have been reported in China for the first time since July, this suggests that an outbreak of infection with a dangerous variant of Delta may be extinguished, but the health situation in other parts of the world shows no signs of improvement.
Delta coronavirus, considered much more contagious, is now dominant in the world and is responsible for the largest wave of infection so far, among others, in South Korea, Japan and many other countries.
In Australia, where there has been a blockade in Sydney for over 2 months due to coronavirus epidemic, there is no sign of improvement. In New South Wales there was even a record of new infections: 919.
In Japan, the state of emergency – due to the Covid-19 epidemic – can be extended to 8 successive prefectures; the death toll of the coronavirus in Thailand has exceeded 10,000, of which over 8,000 have arrived in the last 2 months.
A meeting of OPEC+ countries will be held next week, and the current situation in the fuel markets may prompt producers from this group to re-evaluate the plan to deliver additional barrels of oil to the markets every month.
"The oil prices quickly bounced and quickly ended the raise," says Howie Lee, economist of Overseas-Chinese Banking Corp.
"The recent fuel market correction, however, was one of the most +stromy+ this year, highlighting the impact of the Delta coronavirus variant on oil demand," he adds.
At the end of the previous session, WTI oil on Nymex gained 2.6 percent, and during the previous 2 sessions raw materials in the US increased by over 8 percent – the most since XI 2020.
Brent at the ICE gained 3.4% at the end of the previous session, and 5.5% on Monday.
Source: PAP
