Title: Oil Down, Increasing COVID-19 Cases Continue to Dampen Fuel Demand Outlook

Jul 26, 2021 01:36AM ET

By: AnalysisWatch

Oil become down Monday morning in Asia however remained little modified while growing numbers of COVID-19 instances globally maintain to cloud the gasoline call for outlook.

Brent oil futures fell 1.16% to $72.59 with the aid of using 1:31 AM ET (5:31 AM GMT) after rolling over to the Oct. 21 agreement on Jul. 25, 2021. WTI futures slid 1.25% to $71.17.

China, a prime crude importer, is handling growing quantity of COVID-19 instances along current intense flooding in elements of the country. Beijing is likewise cracking down at the misuse of import quotas, which, blended with better crude prices, should see China’s increase in oil imports sink to the bottom in a long time in 2021. However, refining charges are predicted to upward thrust in the 2nd 1/2 of 2021.

The present day surge in COVID-19 instances coincide with and predicted surge in deliver from the Organization of the Petroleum Exporting Countries and their allies (OPEC+) beginning in August. This should imply a tightening marketplace and uneven waters in advance for the black liquid.

However, talks to restore a 2015 nuclear deal that would upload Iranian resources again to the marketplace had been postponed to August. The U.S. is likewise thinking about cracking down on Iranian oil income to China in education for the opportunity that the talks will now no longer materialize, or that Iran will take a difficult stance in the event that they do.

Meanwhile, U.S. oil rigs rose with the aid of using seven to 387 throughout the preceding week, their maximum on account that April 2020, Baker Hughes Co. stated on Friday.