Oil is stable amid tight supply and the “Corona” outbreak

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Oil prices stabilized on Tuesday, as investors bet that the tight supply and the growing rates of vaccination will mitigate the impact of demand on the high cases of Covid-19 around the world.

Brent crude futures were up one cent at $74.51 a barrel. US West Texas Intermediate crude contracts fell eight cents, or 0.1 percent, to $71.83 a barrel. Both benchmarks held even after the United States issued travel warnings to Spain and Portugal due to the growing number of COVID-19 infections. A White House official told Reuters that broader travel restrictions would not be lifted due to the fast-spreading delta strain and an increase in local infections.

“Given demand growth likely to outpace supply growth in the near term, we expect oil shortages over the summer, which will boost prices,” UBS analysts said in a research note.

In a positive indicator of fuel demand, Britain recorded the lowest total of new daily infections with the Corona virus since the fourth of July yesterday, Monday, indicating that the recent growth in infections has exceeded its peak.

(Reuters)





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