Oil falls as India COVID-19 crisis takes toll on fuel sales

03.05.2021 - Korneychuk Evgeniya
Oil falls as India COVID-19 crisis takes toll on fuel sales

Oil prices dropped on Monday as a worsening second COVID-19 wave in India cut off oil demand recovery in the country. This offset optimism about a strong demand rebound in developed countries in the second half of 2021. 

Brent crude futures for July contract lost 0.2%, or 15 cents, at $66.61 per barrel. U.S. West Texas Intermediate for June delivery fell 0.2%, or 10 cents, at $63.48 per barrel.

State-level lockdowns to curb rising infections in India have caused fuel sales in the country to drop in April. 

However, global vaccination programmes are expected to boost oil demand, particularly during peak travel season in the third quarter. Analysts expect Brent to average $64.17 per barrel in 2021.

Meanwhile, OPEC pumped 25.17 million bpd in April, up 100,000 barrels from the previous month. U.S. energy firms added oil and natural gas rigs last week, its ninth consecutive month of increase.

Still, U.S. crude production fell by more than a million bpb in February, its lowest since October 2017.

Risk disclaimer "PROMETHEUS LTD – Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Republic of the Marshall Islands MH96960 is a financial services institution outside the European Union Area, which is subject to the supervision of the IFMRRC Certificate 0395 AA V0155 Trading in Forex/ CFDs and Other Derivatives is highly speculative and carries a high level of risk. It is possible to lose all your capital. 70% of trading deals can be unprofitable. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. This Website may contain information in particular regarding financial services and products that could be regarded b a E.U. supervisory authority as an offer of financial services targeted in Europe. ESMA intervention measures do not apply to customers of PROMETHEUS LTD and it is your responsibility to choose a company which is most suitable for your trading needs. By clicking continue you confirm that you have read, understood and agree to the risk disclosures, terms of service, cash policies, privacy policies and this notice and that you are visiting this website on your own initiative, without any encouragement whatsoever from umarkets.ai or PROMETHEUS LTD." Cookies notification: We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we assume that you are happy with it. Read more. Continue
×

Help with deposit?