Ana sayfa » Oil prices rose 2% but fell on a weekly basis due to demand concerns

Oil prices rose 2% but fell on a weekly basis due to demand concerns

by BUNKERIST

Oil soared more than 2% in volatile trade on Friday, but a new wave of coronavirus infections across Europe wrapped up nearly 7% for the week as fuel demand dropped hopes for an imminent recovery.

Brent crude settled up $1.25 a barrel, or 2%, at $64.53 a barrel. West Texas Intermediate (WTI) crude rose $1.42, or 2.4%, to $61.42. During the session, both traded within a wide range of more than $2 a barrel.

The weekly loss for both benchmarks was just under 7%.

Oil plummeted 7% as major European economies reintroduced lockdowns, vaccination programs slowed over distribution problems and fears of side effects.

Prices soared on Friday as most market players viewed the sales as exaggerated.

The sale triggers some factors that could slow the rally. OPEC will be more sensitive to COVID, raising the possibility of extending production cuts once again, due to the risk of falling prices. The enthusiasm of the US shale gas oil producers, who contribute to the excess supply if they participate in production, will undoubtedly be discouraged.

US drillers are said to have added nine oil rigs this week, the biggest weekly increase since January.

Concerns about vaccine applications have also limited the oil’s gains.

Vaccination resumed after regulators in Germany, France and other countries declared that the AstraZeneca vaccine, whose side effects were discussed and was discontinued for a while, was safe. However, stopping early made it difficult to overcome the resistance of the disease.

The UK announced that it will have to slow the launch of the COVID-19 vaccine next month due to the delay in supply.

Although the Organization of Petroleum Exporting Countries and its allies are expected to act to compensate for this demand risk, uncertainties about European Union demand and Iranian supply will likely make it difficult to rebalance the market.

Iran has made China its most important customer with record amounts in recent months. India’s state refineries have added Iranian oil to their annual import plans on the assumption that US sanctions will soon ease.

The US Commodity Futures Trading Commission (CFTC) said hedge funds and other currency managers raised net long US crude futures and options positions last week.