[ad_1]
Oil prices fell early Monday to start August with losses after posting a fourth consecutive month of gains in July.
Oil stabilized higher on Friday to end the fourth consecutive month of gains, but erased Friday’s gains on Monday due to the resurgence of COVID cases around the world, weak Chinese economic data and the increase in the oil supply of the OPEC + group.
At 11:05 a.m. EDT on Monday, WTI crude was down 2.31% to $ 72.24 and Brent crude was trading at $ 73.89, down 2.02%.
“Crude futures more than offset modest gains from Friday to the early hours of Monday trading in Asia, with weekend headlines bringing mostly disheartening news of the Covid-led resurgence. Delta variant across the world, ”Vanda Insights said in an opening note. On Monday.
“The main concern in the oil market was China, where the worst Covid outbreak in months has spread to two other regions of the country – Fujian province and the megalopolis of Chongqing – health authorities said on Saturday,” added Vanda Insights.
China also saw its weakest expansion in the manufacturing sector in 15 months, according to Caixin China General Manufacturing’s Purchasing Managers Index (PMI).
Weaker economic data and the resurgence of COVID cases combined with higher production from the OPEC + group weighed on oil prices in early August.
OPEC alone is said to have pumped its highest oil volumes since April 2020 in July, to 26.72 million barrels per day (bpd), up 610,000 bpd from June, the Reuters monthly survey. Since August, the OPEC + alliance has placed an additional 400,000 bpd on the market.
This week, the market will observe the entry into office of new Iranian President Ebrahim Raisi and the potential implications for nuclear talks, especially in light of last week’s drone attack on an oil tanker linked to Israel off the coast of Israel. ‘Oman, after which the United States and the United Kingdom joined with Israel in blaming Iran for the attack.
“After reviewing the available information, we are confident that Iran carried out this attack, which killed two innocent people, using one-way explosive drones, a deadly capability that it is increasingly using across the region. US Secretary of State Antony Blinken said on Sunday. .
By Tsvetana Paraskova for OilUSD
More reads on Oil Octobers:
[ad_2]
Source link