Oil recovers, threatened by pandemic, supply concerns

20.07.2021 - Davydova Maria
Oil recovers, threatened by pandemic, supply concerns

Oil prices held steady on Tuesday following their 7% drop in the previous session. The drop was precipitated by the retreat of markets due to worries about an increase in COVID-19 cases worldwide, coming just as producers agreed on a new supply deal.

Brent crude went up 0.6%, or 38 cents, to $69.00 a barrel by 0058 GMT. The US crude contract for August delivery, which expires on Tuesday, rose 0.7%, or 49 cents, at $66.91 a barrel. US crude for September delivery gained around 1% at $66.99 a barrel.

The selloff was “Largely due to concerns centered on the Delta variant and macro backdrop rather than a significant re-think of forward-looking oil fundamentals,” the RBC Capital Markets noted.

The development came after the Organization of the Petroleum Exporting Countries and allies (OPEC+) came to an agreement on Sunday to boost production.

The more virulent Delta variant of the COVID-19 is now the most common strain worldwide, according to US officials’ statement on Friday.

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?