Oil prices rose on Monday, as positive industry data from Europe and Asia offset increased frequency of Covid-19 infections around the world, and fears of oversupply fueled by the possibility of OPEC and its allies reducing production cuts.
Brent crude was up 5 cents, equivalent to 0.1% to $ 43.57 a barrel, and American West Texas Intermediate increased 6 cents, or 0.1%, to $ 40.33. Over the past month, Brent was trading in a range between $ 41 and $ 45.”Oil is still being traded in a way that is associated with an unreasonable range, it seems that speculators are becoming more concerned about the recovery of demand, as the pace is much slower than the market expectations after entering the second half,” said Warren Patterson, director of commodity strategy at ING. Of the year. ”
Coronavirus cases continued to increase in the United States and reached nearly 18 million globally, as more countries impose new restrictions or extend existing restrictions in an effort to control the pandemic.
While the demand for fuel is gradually recovering in the face of increasing frequency of HIV infections, investors are also concerned about the oversupply at a time when the Organization of Petroleum Exporting Countries (OPEC) and its allies are preparing, within the framework of what is known as the OPEC + group, to ease restrictions on oil supplies from This August.