Investing.com-Oil prices began to rise at the beginning of the week with their worst decline in 16 months, shaking long positions in the market but unscathed.
What the oil bulls need to hope in the coming weeks is that US gasoline consumption will not decrease significantly, which will lead to claims that the Covid case reports appearing in the Delta variant usurp crude oil demand.
The benchmark price of US oil traded in New York rose 16 cents, or 0.2%, to close at $72.07 per barrel. This week, WTI fell 0.4
The global benchmark price of oil traded in London rose 31 cents, or 0.4%, to close at $74.10. This week, Brent crude oil rose 0.7%.
WTI’s plunge of 7% on Monday was the first sudden awakening of bulls in the market in two months. During this period, OPEC+ successfully cleared the crude oil surplus caused by the pandemic, which pushed up prices by 25%. Tight oil-or the supply is at or slightly below the five-year seasonal level.
OPEC+, composed of 23 countries-combining 13 member states of the Organization of Petroleum Exporting Countries led by Saudi Arabia and 10 other oil producing countries led by Russia-said last week that it will supply from August to December An increase of 2 million barrels.
Although this is the first time that the group that cut production by 10 million barrels a day at the height of the pandemic has increased its production significantly, in Monday’s risk aversion, OPEC+’s move still disturbed investors, which hit the stock market and almost all other risks assets.
John Kilduff, founding partner of New York energy hedge fund Again Capital, said: “We need to realize that most of the touted oil demand is now supported by one thing: US gasoline.” “Unless aviation. Fuel has taken off sharply again from the restart of global travel, otherwise the demand situation may be more implicit than the actual situation. If gasoline does not perform as expected for any reason, then there may be a real problem with oil.”
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