oil price Steady after two days of decline as investors assessed the demand outlook from the return of Covid-19 in several sectors.
Futures in New York were trading above $68 a barrel after falling more than 2% in the past two sessions. While strong demand is emerging in some regions, including Europe, the rapidly spreading delta virus variant has resulted in renewed lockdowns in other regions. The strengthening of the dollar has made the price of commodities more expensive in the currency.
Oil’s sharp rally has been disrupted by the depth of the pandemic as Delta’s spread has curbed fuel consumption. However, China, the world’s biggest oil importer, has managed its own version of the outbreak, and expect markets to tighten by the end of the year.
The early timeframe for Brent was at 63 cents a barrel backward – a bullish structure where near-dated contracts are more expensive than later dates – on Tuesday. This compares with 60 cents a day earlier.
Covid-19 infections in Singapore hit a one-year high and the city-state is not ruling out reimposing restrictions, while the Philippines has held back from easing restrictions in the capital region. In the US, the death toll has topped 650,000, although three-quarters of adults have now taken at least one vaccine dose.
This story has been published without modification in text from a wire agency feed. Only the title has been changed.
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