Oil prices changed little on Monday, being traded in a narrow range, as European economic reopens made up for the discouragement of COVID-19 cases in Asia, new restrictions and lower-than-expected Chinese manufacturing data.
Brent crude fell 1 cent, or less than 0.1%, to $ 68.70 a barrel at 0908 GMT, and West Texas Intermediate (WTI) crude fell by a similar amount to $ 65.36.
Both contracts have risen more than 30% since the beginning of the year, and Brent remains close to the $ 70 a barrel limit.
“The fact that prices remain relatively stable during this rather turbulent five-day period indicates that confidence in a healthy oil market remains intact and, unless something unpredictably negative occurs, any potential for a fall will be limited,” he said. the PVM Oil analyst Tamas Varga.
The British economy reopened on Monday, giving 65 million people a measure of freedom after the darkness of a four-month COVID-19 blockade. Read More
The promise of strong economic growth has kept oil prices high in recent weeks, although the pace of inflation has kept many investors concerned about the possible rise in interest rates and falling consumer spending.
Investors also remained cautious about concerns that the highly transmissible coronavirus variant, first detected in India, is spreading to other countries.
Some Indian states said on Sunday that they would extend the COVID-19 blockades to help contain the pandemic, which has killed more than 270,000 people in the country. Read More
Singapore is preparing to close schools this week, while Japan has declared a state of emergency in three more prefectures to contain outbreaks. Read More
Disappointing economic data from China also increased the pressure.
China’s factories slowed production growth in April and retail sales significantly lost expectations as officials warned of new problems affecting the recovery of the world’s second largest economy. Read More
China’s crude oil production increased 7.5% in April from the same month last year, but remained off the peak seen in the last quarter of 2020. Read More
“With growing concerns about the spread of the pandemic in Asia, Brent prices are expected to remain in the trading range this week,” said Kazuhiko Saito, chief analyst at commodities brokerage Fujitomi Co.
Meanwhile, the shortage of gasoline plaguing the U.S. East Coast slowed slowly on Sunday, with another 1,000 stations receiving supplies while Colonial Pipeline’s 5,500-mile (8,900 km) system was recovering from a paralyzing cyber attack. Read More
US energy companies have added oil and natural gas platforms for the third week in a row, as higher oil prices drive some drillers to return to the well, energy services company Baker Hughes Co (BKR.N) said on Friday.
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