Oil falls on Chinese COVID-19 curves, dollar strength

  • Brent, WW 2-1 / 2 weeks down
  • China reports that the new CV-19 cases have occurred
  • China’s July crude production fell 20% year-on-year

MELBOURNE, Aug. 9 (Reuters) – Oil prices fell more than 2% on Monday, raising fears of a sharp rise in the US dollar last week and fears a new outbreak in Asia, particularly China, could slow global recovery. Fuel demand.

Brent crude fell $ 1.52 or 2.2% to 69.17 barrels at 0657 GMT, down 6% last week, the biggest weekly loss in four months.

The U.S. West Texas Intermediate (WTI) crude futures fell sharply last week to $ 1.64, or 2.4% to $ 66.64 a barrel, after falling sharply last week in the first nine months.

“Concerns about global oil demand erosion have re-emerged in the Delta,” RBC analyst Gordon Ramsey said in a statement.

ANZ analysts point to new restrictions in China, the world’s second-largest oil producer, which has clouded demand.

The ban includes flight cancellations, travel bans in 46 cities, and, to a lesser extent, restrictions on public transportation and taxi services in 144 areas.

On Monday, China reported 125 new COVID-19 cases, up from 96 a day earlier. Infections in Malaysia and Thailand continue to hit more than 20,000 daily records. Read more

Adding to the darkness, data released over the weekend shows that China’s exports have slowed more than expected following the Covide-19 case and flooding. Read more

Focusing on mainland China: “Both (Benmark raw) contracts seem to be exposed to the worst of the virus by focusing on mainland China. Markets are also sensitive to headlines that suggest China’s economic recovery is at an all-time high after the weekend. Haley is on a note.

China’s crude oil imports fell by at least 9.71 million barrels (bpd) per day in July, down by 10 million bpd in the fourth month, and a record 12.94 million bpd in June 2020 when filters were stored. On the cheap raw, Saturday’s data shows. Read more

Friday’s rally in US dollars rallied on oil prices after Friday’s announcement that the Federal Reserve could move faster to tighten US monetary policy.

Solid US dollars make oil more expensive for other currencies.

Shopping was quiet during the festivals in Japan and Singapore.

Report by Sonali Paul; Correction by Clarence Fernandez, Richard ull Lynn and Louise

Our Standards – Thomson Reuters Trust Principles.

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