The crude oil prices fell on Monday on expectations of an increase in supply, while higher energy costs and an increase in cases of the Covid-19 they also hurt demand.
At 11:15 GMT, Brent crude futures were down $ 1.11, or 1.36%, at $ 81.05 a barrel; while those of the West Texas Intermediate in the United States (WTI) were down 1.03 dollars, or 1.27%, at 79.76 dollars a barrel.
Crude markets have declined in the last three weeks, hit by the appreciation of the dollar and speculation that the government of Joe Biden could release crude from the United States Strategic Petroleum Reserve to cool prices.
“Possible releases of crude from US strategic oil reserves are largely to blame for the price drop,” said SEB’s chief commodities analyst, Bjarne Schieldrop.
“The most likely reason for the current weakness of the oil price it is the rising rates of Covid-19 infections and associated concerns about global oil demand due to lockdowns or restrictions, “he added.
The Organization of Petroleum Exporting Countries (OPEC) last week cut its forecast for global crude demand for the fourth quarter by 330,000 barrels per day from the previous forecast, as high energy prices are hampering the economic recovery from the pandemic.
Europe has once again become the epicenter of the Covid-19 pandemic, prompting some governments to consider re-imposing lockdowns, while China fighting the spread of its largest outbreak caused by the Delta variant.
Russia’s Rosneft, the world’s second-largest oil company by production after Saudi Aramco, warned on Friday of a potential “super cycle” in global energy markets, raising the outlook for even higher prices as demand outstrips supply.
Reference-www.eleconomista.com.mx