Oil prices recover from 3-week low despite fears of falling demand

Last Updated on August 12, 2021

Oil prices rose by more than 1.5% during the trading session today in the European market, approaching to record its first daily gains during the last three sessions. But despite this rise, the gains are still limited by fears that the rise in infections with the Coronavirus and the imposition of new restrictions in China will negatively affect the levels of fuel demand.

Oil prices continue rising

Oil prices

US crude rose more than 1.5% until 09:25 GMT, to trade around the level of 68.02 US dollars per barrel, from the opening level of today’s session at 66.83 dollars, and reached the lowest price at 66.59 dollars per barrel.

International crude oil “Brent crude” also rose by about 1.5 percent to the level of $70.32 a barrel, compared to the opening level of $69.33, and it reached early in the session the lowest price at $68.97 a barrel.

At the close of trading on Monday, US crude lost 1.7 percent in the second consecutive daily loss, hitting a three-week low of $65.17 a barrel, and the benchmark Brent crude also fell 1.5 percent, recording $67.62 a barrel, the lowest since the twentieth month.

Demand concerns

Oil prices are currently under many pressures, especially due to the growing fears again about the pace of recovery in global levels of fuel demand, with cases of Coronavirus continuing to rise in most countries of the world, especially in the major Asian countries, which led to the tightening of restrictions of closure and sanitary isolation.

On Tuesday, health authorities in China reported more coronavirus infections in the latest outbreak of the pandemic, which was first detected in the country in late 2019.

In the context of this, some Chinese cities have tightened restrictions related to sanitary isolation, as part of continuing attempts to prevent the spread of the new highly contagious “delta” strain of the Coronavirus in the country.

 

Professional Trader and Analyst, economist in Financial and Forex marketsince 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.
Mohammed Abdelkhalik

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