Oil rises as market shrugs off virus impact

Publish August 11, 2021
oil and gas

Brent crude was up $1.06, or 1.5 percent, at $70.10 a barrel US crude, gasoline, and other product inventories are likely to have dropped last week

LONDON: Oil prices rose more than $1 on Tuesday, recouping some of the losses in the previous session, as rise of demand in Europe and the United States outweighed concerns over a rise of COVID cases in Asian countries.
Brent crude was up $1.06, or 1.5 percent, at $70.10 a barrel by 11:34 a.m. GMT, and US oil rose $1.29 cents, or 1.9 percent, to $67.77 a barrel.
Both contracts dropped around 2.5 percent on Monday, but analysts believe the pandemic setback will not last for long.
“This turbulence should remain temporary, not the least as Western world oil demand is back at, or above, pre-pandemic levels and is draining global supplies,” said Nortbert Ruecker, analyst at Swiss bank Julius Baer.
US crude, gasoline, and other product inventories are likely to have dropped last week, with gasoline stocks forecast to fall for a fourth consecutive period, a preliminary Reuters poll showed on Monday.
Crude oil inventories are expected to have fallen by about 1.1 barrels in the week to Aug. 6, according to the average estimate of six analysts polled by Reuters.
In the United States, the Senate is set to vote on the passage of a $1 trillion infrastructure bill later on Tuesday, which, if passed would boost the economy and demand for oil products, analysts said.
Successful vaccination programs in the West and encouraging economic data come in sharp contrast to the rising infection in the East.
In Australia, the police force is on the street to enforce COVID-related restrictions and some cities in China, the world’s top crude oil importer, have stepped up mass testing as authorities try to stamp out a new surge of the virus.
“The lockdowns (in China) could instigate a momentary pause in price action, but as COVID-19 cases are expected to abate quickly given the relatively low number of infections, the downside may be fleeting,” said StoneX analyst Kevin Solomon.
Economic data this week, especially the US Consumer Price Index on Wednesday, will provide guidance on how hard the virus will hit global and regional oil consumption, analysts said.

arabnews

Latest Stories

UAE delivers 60,000 COVID-19 vaccine doses to Yemen's strategic island: gov't source

2021-06-20 07:00:00

The United Arab Emirates (UAE) on Thursday dispatched a plane carrying a shipment of 60,000 COVID-19 vaccine doses to war-ravaged"...
Read More

Yemen: Hundreds protest against corruption, high cost of living

2021-06-06 05:00:00

Hundreds of Yemenis in Taiz yesterday protested against corruption and the high cost of living, Anadolu reported.

Human"...
Read More

Yemen Oil and Gas Market SWOT Analysis 2021, by Company, Regions, Type and Application, Forecast to 2026

2021-05-05 06:00:00

The Yemen Oil and Gas market study is a compilation of the important data associated with each and every matter of the Yemen Oil"...
Read More

OIC chief, Yemeni FM discuss developments in Yemen-

2021-02-23 07:00:00

Dr. Youssef Al-Othaimeen, secretary-general of the Organization of Islamic Cooperation (OIC), on Sunday received Yemen’s Foreign"...
Read More