Oil prices retreated yesterday, to go through a period of calm, after touching their highest levels in six weeks, as fears of broader lockdown measures in India and Brazil to curb the “Covid-19” pandemic offset positive expectations about summer fuel demand and economic recovery.
Brent crude fell 31 cents, equivalent to 0.5%, to $ 68.25 a barrel, which is the last trading day for the contract, the closest due for June delivery. US West Texas Intermediate crude for June delivery reached $ 64.59 a barrel, down 42 cents, or 0.7%.
Prices were also under pressure after the growth of factory activity in China slowed and below expectations in April, although a private sector survey showed that factory activity in Japan grew in April at the fastest pace since early 2018.
“Energy Aspects” analysts said in a note: “The recovery in demand after (Covid-19) remains uneven, and the rise in Indian cases is a timely reminder that any rise to $ 70 is premature.”
They added that it is likely to reach such a level in the third quarter of this year, when demand witnesses a fundamental improvement and stocks are reduced. The third largest consumer of oil in the world is in a deep crisis, with hospitals and morgues crowded, as the number of (Covid-19) cases exceeded 18 million cases last Thursday.
Brent is on track to rise by 8% in April, while West Texas Intermediate crude may see an increase of 10% this month.
West Texas Crude
It decreased to 64.59
Dollars per barrel.
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