Oil sinks amid continuing concerns over virus impact on fuel demand

09.08.2021 - Davydova Maria
Oil sinks amid continuing concerns over virus impact on fuel demand

Oil dropped in Asia on Monday, extending its losses from the previous week as the continuing restrictive measures to contain the latest coronavirus outbreaks raise concerns about fuel demand.

Brent oil futures plunged 1.94% to $69.33 by 10:32 PM ET (2:32 AM GMT), and WTI futures sank 2.05% to $66.88. Both futures stayed below the $70 mark.

In China, the world’s biggest oil importer, restrictions put up to curb the country’s latest COVID-19 outbreak have dampened the fuel demand outlook. The country has so far canceled flights, put out travel advisories in 46 cities, and limited public transportation services in 144 areas.

The recovery of the dollar, boosted by Friday’s better-than-expected US jobs report that fueled bets that the US Fed would begin asset tapering earlier, has also dealt a blow to oil.

In related news, the Organization of Petroleum Exporting Countries (OPEC) will release its monthly Oil Market Report on Thursday.

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?