[ad_1]
Oil prices fell for a third day in a row on Monday as the continued spread of the delta variant of the coronavirus hurt the outlook for global demand, and drilling data from the United States indicated an increase in activity.
CMarkits London CEO Dr Yousef Al-Shammari said in an interview with Al-Arabiya that signs of declining demand in China are not positive for prices, but demand is expected to in the United States remains strong.
He pointed out that the news out of China raises questions about the effectiveness of vaccines and whether the scenario will repeat itself in other countries, and whether developments will extend to further closures and restriction of transport and transportation. air traffic.
West Texas Intermediate crude fell 1.1% below $ 68 a barrel, after losing 0.9% on Friday, while benchmark Brent crude fell below $ 70.
In Asia, a new wave of the virus epidemic has started to weigh on the Chinese economy. Meanwhile, cases are reaching or approaching record highs in countries like Thailand, Vietnam and the Philippines.
Data on Monday showed that economic activity in China slowed more than expected in July, as retail sales and industrial production fell short of expectations and the unemployment rate rose.
There are signs that US shale oil producers are stepping up their activities. The total number of oil rigs across the country increased by 10 last week to 397, marking the biggest weekly jump since April, according to data from Baker Hughes Inc.
After rebounding in the first half of the year, the dynamics of crude prices have been running out of steam since mid-July. The delta spread, including in oil-intensive China, rocked consumer expectations with the reimposition of movement restrictions. Meanwhile, the OPEC + alliance has embarked on plans to gradually increase production, reversing supply restrictions it imposed at the start of the pandemic.
Source link
