AGL 6.67 Decreased By ▼ -0.23 (-3.33%)
ANL 9.85 Increased By ▲ 0.08 (0.82%)
AVN 76.00 Decreased By ▼ -0.82 (-1.07%)
BOP 5.37 Decreased By ▼ -0.12 (-2.19%)
CNERGY 4.99 Decreased By ▼ -0.06 (-1.19%)
EFERT 78.03 Decreased By ▼ -1.80 (-2.25%)
EPCL 55.70 Decreased By ▼ -1.78 (-3.1%)
FCCL 15.38 Increased By ▲ 0.08 (0.52%)
FFL 6.54 Increased By ▲ 0.06 (0.93%)
FLYNG 7.28 Decreased By ▼ -0.06 (-0.82%)
GGGL 10.55 Decreased By ▼ -0.20 (-1.86%)
GGL 16.75 Decreased By ▼ -0.19 (-1.12%)
GTECH 8.50 Increased By ▲ 0.20 (2.41%)
HUMNL 6.50 Increased By ▲ 0.05 (0.78%)
KEL 3.05 Increased By ▲ 0.03 (0.99%)
LOTCHEM 29.01 Decreased By ▼ -0.14 (-0.48%)
MLCF 28.40 Increased By ▲ 0.10 (0.35%)
OGDC 76.05 Decreased By ▼ -0.48 (-0.63%)
PAEL 15.68 Decreased By ▼ -0.19 (-1.2%)
PIBTL 5.30 Decreased By ▼ -0.13 (-2.39%)
PRL 17.62 Decreased By ▼ -0.07 (-0.4%)
SILK 1.06 Decreased By ▼ -0.02 (-1.85%)
TELE 10.70 Decreased By ▼ -0.12 (-1.11%)
TPL 8.26 Decreased By ▼ -0.34 (-3.95%)
TPLP 21.37 Increased By ▲ 0.18 (0.85%)
TREET 23.61 Decreased By ▼ -0.19 (-0.8%)
TRG 125.25 Decreased By ▼ -2.25 (-1.76%)
UNITY 22.60 Decreased By ▼ -0.50 (-2.16%)
WAVES 11.57 Decreased By ▼ -0.06 (-0.52%)
WTL 1.15 Increased By ▲ 0.01 (0.88%)
BR100 4,155 Decreased By -18.8 (-0.45%)
BR30 15,610 Decreased By -196.3 (-1.24%)
KSE100 41,435 Decreased By -83.1 (-0.2%)
KSE30 15,504 Decreased By -57.7 (-0.37%)
Markets

Oil rises as market shrugs off virus impact

  • Brent crude was up $1.06, or 1.5%, at $70.10 a barrel by 1134 GMT, and US oil rose $1.29 cents, or 1.9%, to $67.77 a barrel
Published August 10, 2021
Follow us

LONDON: Oil prices rose more than $1 on Tuesday, recouping some of the losses in the previous session, as rise of demand in Europe and the United States outweighed concerns over a rise of COVID cases in Asian countries.

Brent crude was up $1.06, or 1.5%, at $70.10 a barrel by 1134 GMT, and US oil rose $1.29 cents, or 1.9%, to $67.77 a barrel.

Both contracts dropped around 2.5% on Monday, but analysts believe the pandemic setback will not last for long.

"This turbulence should remain temporary, not the least as Western world oil demand is back at, or above, pre-pandemic levels and is draining global supplies," said Nortbert Ruecker, analyst at Swiss bank Julius Baer.

Oil slides near 3% on China virus curbs and strong dollar

US crude, gasoline, and other product inventories are likely to have dropped last week, with gasoline stocks forecast to fall for a fourth consecutive period, a preliminary Reuters poll showed on Monday.

Crude oil inventories are expected to have fallen by about 1.1 barrels in the week to Aug. 6, according to the average estimate of six analysts polled by Reuters.

In the United States, the Senate is set to vote on the passage of a $1 trillion infrastructure bill later on Tuesday, which, if passed would boost the economy and demand for oil products, analysts said.

Successful vaccination programmes in the West and encouraging economic data come in sharp contrast to the rising infection in the East.

In Australia, the police force is on the street to enforce COVID-related restrictions and some cities in China, the world's top crude oil importer, have stepped up mass testing as authorities try to stamp out a new surge of the virus.

"The lockdowns (in China) could instigate a momentary pause in price action, but as COVID-19 cases are expected to abate quickly given the relatively low number of infections, the downside may be fleeting," said StoneX analyst Kevin Solomon.

Soybeans consolidate with Chinese demand in focus

Economic data this week, especially the US Consumer Price Index on Wednesday, will provide guidance on how hard the virus will hit global and regional oil consumption, analysts said.

Comments

Comments are closed.