While investors appreciated the negotiations, oil prices fell by 7 days

  • Prices return from the biggest weekly loss of more than 9 months
  • The soft US dollar provides some support
  • U.S. oil and gas refineries rise for third week – Buck Hughes

TOKYO, Aug. 23 (Reuters) – Oil prices have risen sharply in the wake of a seven-day loss in a bid for investors and soft dollar support, despite persistent concerns over alternatives to the Delta Corovirus virus.

Brent crude futures rose to $ 1.16, or 1.8%, to $ 66.34 after trading at 0430 GMT on May 21.

West Texas Intermediate (WTI) futures rose $ 1.07, or 1.7%, to $ 63.21, recovering from $ 61.74, the lowest hit in Asia since May 21.

With the global epidemic weakening as oil prices plummeted, both measures marked the biggest loss in more than nine months last week – Brent about 8% and WTI down about 9%.

“Oil prices have fallen sharply since last week,” said Kazuhiko Saito, chief analyst at Fujitomi Securities Company.

“We expect to see a lot of changes this week, but market sentiment may remain a threat to rising global demand for oil,” he said.

Many countries around the world are responding to the high incidence of coronavirus infection in the Delta, increasing the travel restrictions to curb the spread.

China, the world’s largest crude oil importer, has imposed new restrictions on its “zero tolerance” coronavirus policy, which affects shipping and international supply chains. The United States and China have also imposed flight restrictions. Read more

As the epidemic dragged on demand for fuel, supply was steadily increasing. U.S. production rose to 11.4 million barrels a day in recent weeks, and drilling companies have added bakeries for the third week in a row, according to service company Baker Hughes. Read more

But one slide in US dollars provided some support.

“The soft dollar has prompted investors to reverse their position,” said Chiyoki Chen, senior analyst at Sundward Trading.

The dollar, which measures the currency against its six peers, traded at 93.333 and fell to a low of 93.734, hitting a record high on Friday for more than nine months. Oil prices fluctuate against the US dollar, lowering the price of oil for foreign buyers when the dollar falls.

Investors also sought to change their position ahead of the annual reserve at the Federal Reserve’s Jackson Hall on the Wyoming Symposium on Friday, Chen said.

The epidemic has prompted the federation to move the symposium to online format, prompting questions from the central bank about a broad assessment of Delta’s potential economic impact. Read more

Report by Yuka Obayashi; Edited by Kenneth Maxwell and Sam Holmes

Our Standards – Thomson Reuters Principles.


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