- WTI is in the hands of the bulls for the open in Asia following a down day in European and US markets.
- Covid risks are at the centre of oils decline from recent demand expectation highs.
At the time of writing, US West Texas Intermediate (WTI) crude is higher by some 0.22% at the start of Wednesday's trading following a terrible day overnight. WTI dropped from a high of $71.92 to a low of $69.22 as concerns of the delta variant gripped.
In more recent trade, however, a private oil survey showed a smaller than expected headline draw in crude oil inventory
Official data follows Wednesday in the morning of the US session.
- Crude -0.879M.
- Cushing +0.659M.
- Gasoline -5.751M.
- Distillate -0.717M.
Concerns over the spread of Delta variant in the United States and China, the top oil consumers, weighed on prices on Tuesday.
Both benchmarks were falling more than 3% at one point. Brent crude oil futures settled down 48 cents, or 0.66% at $72.41 a barre. WTI crude settled down 70 cents, or 0.98% at $70.56 a barrel.
Reports of a recently leaked document from the CDC was partly to blame.
According to the New York Times, the reports said that the Delta variant is more transmissible than the common cold, 1918 Spanish flu, smallpox, Ebola, MERS, and SARS. Also, in China, the spread of the variant from the coast to inland cities has prompted authorities to impose strict measures to bring the outbreak under control which has dented the demand side case for energy markets.
Looking beyond covid, rising energy demand risk should continue to support higher prices. The OPEC+ supply increases of 400,000 barrels per day of new production that have started this month are still seen to be underwhelming.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD turns negative near 1.0760
The sudden bout of strength in the Greenback sponsored the resurgence of the selling pressure in the risk complex, dragging EUR/USD to the area of daily lows near 1.0760.
GBP/USD comes under pressure and challenges 1.2500
GBP/USD now rapidly loses momentum and gives away initial gains, returning to the 1.2500 region on the back of the strong comeback of the US Dollar.
Gold retreats from highs on stronger Dollar, yields
XAU/USD trims part of its initial advance in response to the jump in the Dollar's buying interest and the re-emergence of the upside pressure in US yields.
XRP tests support at $0.50 as Ripple joins alliance to work on blockchain recovery
XRP trades around $0.5174 early on Friday, wiping out gains from earlier in the week, as Ripple announced it has joined an alliance to support digital asset recovery alongside Hedera and the Algorand Foundation.
Week ahead – US inflation numbers to shake Fed rate cut bets
Fed rate-cut speculators rest hopes on US inflation data. After dovish BoE, pound traders turn to UK job numbers. Will a strong labor market convince the RBA to hike? More Chinese data on tap amid signs of slow Q2 start.