Last week Brent fell and West Texas crude rose

Last week Brent fell and West Texas crude rose: Despite the closed correction at the end of the week,
crude oil prices have moved slightly over the past week.

Investors’ concern that a worldwide outbreak of the coronavirus will slow oil demand remains the dominant sentiment.

On Friday (13/8), the price of Brent Crude for October 2021 delivery closed down 1% to $70.59 per barrel.

The price of Western Intermediate (WTI) crude for the September 2021 delivery future was corrected by 1% to the US $68.44 per barrel.

In the week ending August 13, Brent crude fell 0.1% after falling 6% in the previous week.

It was the week that saw the biggest losses in four months.

West Texas Intermediate crude rose 0.2% last week after falling about 7% in its biggest weekly fall in nine months.

Oil morale over the weekend came from an IEA statement that the rising demand for crude oil stalled in July.

In addition, the increase in demand is expected to be slower over the rest of the year
due to higher infections from the coronavirus delta variant.

However, oil continues to be supported by increased demand from the world’s major consumers,
such as the United States and other countries with higher vaccination rates for Covid-19.

“While the IEA report is very poor with regard to demand, in the short term it is clear that there is a supply deficit
and this is likely to continue because we see travel restrictions on airlines lifted in the United States,” said one expert in New York.

Major banks announce their oil forecasts

Major banks such as Goldman Sachs and JPM Commodities Research, which were previously considered less optimistic about crude oil.

Once again, the main sentiment is the rising rate of coronavirus infection.

Goldman Sachs has cut its global oil deficit forecast to 1 million barrels per day from 2.3 million barrels per day in the short term,
citing expectations of declining demand in August and September.

However, Goldman Bank continues to estimate that demand recovery will continue as vaccination rates increase.

According to Reuters, Jim Ritterbusch, president of Ritterbusch and Associates LLP in Galena, Illinois,
said: “The recent influx of positive macroeconomic guidance from the United States indicates a further increase
in oil demand after the decline of the Delta Variant.”

In the meantime, JPMorgan said it now sees “the recovery in global demand stalling this month”
with demand remains roughly in line with an average of 98 million barrels per day for global consumption in July.

In contrast, the Organization of the Petroleum Exporting Countries (OPEC) on Thursday maintained its forecast
for a recovery in global oil demand this year and further growth in 2022,
despite growing concerns about the Covid-19 rise.

On the other hand, U.S. energy companies added the largest number of drilling platforms in a week since April.

Based on Baker Hughes data, this makes the total number of rigs more than double the record low set last year.

US oil platforms rose from 10 to 397 this week, the highest level since April 2020, rising from 172 last year,
the lowest level since 2005 before the shale oil boom boosted activity.

The number of combined oil and gas platforms, an early indicator of future production, rose by nine to 500 in the week ending August 13,
raising it by 105% from a record low of 244 this time last year,
according to Baker Hughes.

The pandemic status in China and its impact on oil

The outbreak in Asia, especially China, is causing new economic constraints.

In particular, China’s hardline approach to Kufid-19 led to the closure of Meishan Station in the world’s third busiest port, Ningbo Zhoushan.

This decision is thought to disrupt supply chains around the world.

“China has made it clear that it will take all actions, even the most extreme, to contain the outbreak.”
Said Craig Erlam, the senior market analyst at OANDA.

He added: “For the rest of the world, this means more supply disruptions in the coming months,
different problems, and higher costs.”

Erlam noted that even a small-scale outbreak in China is enough to reduce oil prices and that if there are further austerity actions,
oil subsidies will be under considerable pressure.”

The S & P Global Platts Analytics reported on August 13 that if volatility eases,
the price of Brent crude for next month’s delivery would prove above
the support level of $70 per barrel, which is the most likely scenario.

Traders tested support for the $70 threshold to assess the impact of high coronavirus infections on demand.

“The next wave leaves the market vulnerable to lower expectations and increased volatility,
but for now key levels of support have been maintained.” Said Platts Analytics.

The spread of the Delta strain brought the price of West Texas Intermediate crude to be shipped
next month down from about $74 per barrel, a level was seen in late July,
to a recent low of about $66 per barrel.

But prices have since recovered against the backdrop of optimism about the launch of a global vaccine
that must eventually prevent economic isolation,
but what is happening now is the virus’s mutated resurgence.

Last week Brent fell and West Texas crude rose

Last week Brent fell and West Texas crude rose

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