Connect with us

Hi, what are you looking for?

Commodities & Futures

Oil Longs End Week Shaken But Unscathed; Eyes on U.S. Gasoline, Covid

Commodities25 minutes ago (Jul 23, 2021 03:47PM ET)

(C) Reuters.

By Barani Krishnan

Investing.com – Oil managed to eke out a gain after starting the week with the worst tumble in 16 months, leaving longs in the market shaken but unscathed.

What oil bulls need to hope for in coming weeks is that the consumption of U.S. gasoline does not let up in a significant way that will allow reports of Covid cases emerging from the Delta variant to usurp the demand narrative.

New York-traded West Texas Intermediate crude, the benchmark for U.S. oil, settled up 16 cents, or 0.2%, at $72.07 per barrel. For the week, WTI lost 0.4

London-traded Brent, the global benchmark for oil, settled up 31 cents, or 0.4%, at $74.10. For the week, Brent rose 0.7%.

WTI’s 7% plunge on Monday was the first rude awakening in two months for longs in the market, who in that period managed to push prices up by 25% on the back OPEC+’s success in clearing the crude glut from the pandemic to create the so-called tight oil — or supplies at or just below five-year seasonal levels.

The 23-nation OPEC+ — which groups the 13 member Saudi-led Organization of the Petroleum Exporting Countries with 10 other oil producers led by Russia — said last week it will raise supply by 2 million barrels from August through December.

While it was the first major production increase by a group that had previously cut 10 million barrels a day at the height of the pandemic, the OPEC+ manoeuvre still rattled investors amid a risk aversion on Monday that hit stock markets and almost every other risk asset.

“We need to realize that much of the oil demand that’s being touted is now held up by one thing: U.S. gasoline,” said John Kilduff. “Unless jet fuel takes off in a big way again from the restart of global travel, the demand picture could be more implied than real. If gasoline, for any reason, doesn’t perform as expected, oil could have a real problem then.”

Oil Longs End Week Shaken But Unscathed; Eyes on U.S. Gasoline, Covid

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Uncategorized

Neque porro quisquam est, qui dolorem ipsum quia dolor sit amet, consectetur, adipisci velit, sed quia non numquam eius modi tempora incidunt.

Uncategorized

Nemo enim ipsam voluptatem quia voluptas sit aspernatur aut odit aut fugit, sed quia consequuntur magni dolores eos qui ratione.

Uncategorized

Quis autem vel eum iure reprehenderit qui in ea voluptate velit esse quam nihil molestiae consequatur, vel illum qui dolorem eum.

Uncategorized

Neque porro quisquam est, qui dolorem ipsum quia dolor sit amet, consectetur, adipisci velit, sed quia non numquam eius modi tempora.

Disclaimer: Buzzclever.com it's managers and its employees (collectively "The Company") do not make any guarantee or warranty about what is advertised or above. Information provided by this website is for research purposes only and should not be considered as personalized financial or health advice. Copyright © 2021 Buzz Clever. All Rights Reserved