After a notable rise, oil is in the red zone

Oil prices fell today, but crude is poised to end the week unchanged after rebounding from a sharp drop last Monday, supported by expectations that supply will remain tight as demand recovers.

Brent crude fell 0.2% to $ 73.68 a barrel at 8:10 a.m. GMT after jumping 2.2% on Thursday.

Meanwhile, US West Texas Intermediate crude fell 0.3% to $ 71.73 a barrel, after rising 2.3% yesterday.

On a weekly basis, Brent crude is expected to end the week stable after declining over the previous three weeks. US crude is also expected to remain stable over the week.

Both contracts fell about seven percent last Monday, but they made up for all those losses, with investors expecting demand to remain strong and the market to receive support from falling oil stocks and prices. high vaccination rates.

Demand growth is expected to exceed supply after an agreement last Sunday between the Organization of the Petroleum Exporting Countries “OPEC” and its allies, as part of the “OPEC +” group, to return 400,000 barrels per day each month from August 2021..

Analysts from “ANZ Research” said in a report that “the market is starting to feel that the increase of 400,000 barrels per day will not be enough to keep the market in balance, and that stocks in the United States and in OECD countries are down. “

Source: Reuters

Follow RT on