The future prospects of US West Texas Middle and International Benchmark Brent crude oil closed sharply last week due to the threat of a widening of demand for omega-3 coronavirus. Last week, the remaining sales of the Strategic Petroleum Reserve (SPR) from several major consumer countries, including the United States, came to light.
Last week, the January WTI crude oil futures fell $ 66.26, $ 1.89 or -2.77%, and the February Brent crude oil futures fell to $ 69.88, $ 1.71 or -2.45%. The United States Oil Fund (USO) ETF closed at $ 48.00, down $ 1.63 or -3.28%.
OPEC and its partners have voted to increase production by 400,000 barrels a day, which seems depressing on paper. However, if you wanted to try to compensate for the oil released by SPR, you could have increased production even further.
OPEC + also said it was willing to make changes to its products if demand fell sharply as a result of the omega outbreak. This is the statement that changed the market last week.
OPEC + RECOP
WTI and Brent crude oil recovered from last week’s weekly slump after surprisingly hitting markets on OPEC +.
Initially, OPEC and its partners planned to increase production by 400,000 barrels per day, but the market was sold out. In the last three weeks, there has been a series of events that have led to a sharp decline in pollution by 24%.
Oil futures have tried to rebuild their rally over the weekend, but uncertainty surrounding the Omicron difference, governments’ efforts to prevent new infections, and traders waiting for more supply have kept traders on their feet.
OPEC +, in conjunction with previous months, decided on Thursday to increase its supply in January. Since August, the record decline in 2020 has been steadily declining.
The White House welcomed the decision, but added that the United States has no plans to reconsider its decision.
OPEC + 400,000 bpd is rising, but investment in many member oil industries is declining and falling below monthly.
If the demand for Omicron Coronavirus decreases due to differences in OPEC + product, the market is in a state of flux. This will change the focus this week to an alternative, which has not hurt the demand so far.
The first signs of the severity of the Omicron COVID-19 variant are “slightly encouraging,” but more information is still needed, says Dr. Anthony Faucci, chief US consultant on epidemiology.
Reports from South Africa indicate that hospital rates are not increasing dramatically.
Although he has yet to make a definite statement about him, Fach says it does not appear to be too serious for him.
“So far, the signs are a little encouraging. But we must be very careful before making a decision that it does not cause any serious illness that can be compared to Delta.
WTI and Brent crude oil could be supported this week if the new variant does not cause as much destructive demand as the Delta variant. It may not be strong enough to take the markets to new heights, but the monthly loss may help to regain a large portion.