Oil Down Over Rising Number of COVID-19 Cases, Fuel Demand Worries
Investing.com
Published Jan 10, 2021 11:12PM ET
By Gina Lee
Investing.com – Oil was down Monday morning in Asia over renewed fuel demand worries as ever-rising numbers of global COVID-19 cases see more countries, most recently in China and Europe, impose strict lockdown measures.
Brent oil futures slid 1.13% to $55.36by 11:11 PM ET (4:11 AM GMT) and WTI futures fell 0.78% to $51.83. However, both Brent and WTI futures remained above the $50 mark.
“COVID-19 hot spots are flaring up again in Asia, with 11 million people [in] lockdowns in China’s Hebei province ... along with a touch of FED policy uncertainty has triggered some profit taking out of the gates this morning,” Axi chief global market strategist Stephen Innes said in a note.
China, the second-largest oil user globally, saw its biggest daily increase in COVID-19 cases in more than five months, the country said on Monday. The growing number of new infections in Hebei province which surrounds Beijing continued to rise, contributing to the surge. Hebei’s capital Shijiazhuan is now the epicenter of a new outbreak in the province, with authorities imposing lockdown measure barring people and vehicles form leaving the city.
Most of the European continent also remains under strict lockdown, with the number of global COVID-19 cases surpassing 90.2 million as of Jan. 11, according to Johns Hopkins University data.
However, U.S. President-elect Joe Biden’s pledge to announce trillions of dollars in new COVID-19 relief measures later in the week capped the black liquid’s losses. Much of these measures will be paid for by increased borrowing.
Saudi Arabia’s pledge during the previous week to voluntarily cut its oil output by 1 million barrels per day (bpd) in February and March, also continued to support crude prices. The cut is part of a deal that sees most Organization of the Petroleum Exporting Countries and allies, or OPEC+, countries hold production levels steady.
“Oil is still pricing in a great deal of optimism linked to the rollout of COVID-19 vaccines … demand will always improve as the vaccines roll out, and the supply side is under control thanks to OPEC+ and Saudi Arabia’s continued efforts,” Axi’s Innes said.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.