Friday, December 9, 2022

Oil Down as COVID-19 Surges and Increase Fuel Demand Worries By Investing.com

-


© Reuters.

By Adam Claringbull

Investing.com – Oil was down on Thursday morning in Asia, as COVID-19 numbers across the globe continued upwards and added to fuel demand worries.

was down 0.56% to $44.09 by 11:58 PM ET (3:58 AM GMT) and fell 0.83% to $41.66, both remaining above the $40 mark. The WTI futures contract rolled over to the January contract on Nov 18.

The global coronavirus pandemic is steadily worsening, with the virus now firmly entrenched across Europe and the U.S. Economically disruptive lockdowns, mostly recently in South Australia state, and public activity restrictions are also on the rise, pulling oil prices down.

The latest COVID-19 data is reducing investor appetite for oil, with global cases now past 56 million, of which 11.5 million are in the U.S., along with over 250,000 deaths, nearly one fifth of total global fatalities, according to Johns Hopkins University.

The positive news about vaccine progress over the last week appears to now be fully absorbed by the markets, with demand worries once again pushing to the fore as countries begin to harden their public health restrictions.

“The spread of COVID-19 infection and fresh restrictions in the United States and other parts of the world hit market sentiment as it would hamper fuel demand … investors are also booking profits from the recent rally before the U.S. Thanksgiving holiday later this month,” Kazuhiko Saito, chief analyst at Fujitomi Co., told  Reuters.

However, not all the news is negative for oil. Wednesday’s showing a 768,000-barrel build for the week to Nov. 13, against the forecast 1.650 million. U.S. distillate stockpiles fell by 5.217 million barrels, higher than the expected 1.457 million.

On Tuesday, the had reported a 4.174-million-barrel crude gain.

“Still, lingering worries over a global supply glut, especially with the COVID-19-hit economies, will likely limit upside of oil prices,” Saito added, also predicting WTI futures to be traded between $40 and $42 until OPEC+’s full ministerial meeting, to be held on Nov. 30 and Dec. 1.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here

FOLLOW US

0FansLike
3,598FollowersFollow
0SubscribersSubscribe
spot_img

Related Stories