Oil stabilizes as the market is swayed between a shortage of supplies and an increase in injuries


Oil prices stabilized on Monday after a volatile session as the spread of the mutated delta strain of Covid-19 raised concerns about fuel demand, but losses were limited by expectations of a shortage in the exhibition for the remainder of the year.
The international benchmark Brent crude contracts ended the trading session up 40 cents, or 0.5 percent, to record at settlement $74.50 a barrel.
US West Texas Intermediate crude contracts fell 16 cents, or 0.2 percent, to settle at $71.91 a barrel.
In early trading, both benchmarks fell by more than a dollar a barrel.
Corona virus infections continued to rise at the weekend, and some countries announced record daily increases and extended public isolation measures. China, the world’s largest crude importer, also recorded an increase in COVID-19 infections.
Some fear that China’s oil imports may grow this year at the slowest pace in two decades, despite an expected increase in refinery operating rates in the second half due to Beijing’s campaign against the abuse of import quotas, accompanied by the impact of higher crude prices.
Analysts at Commerzbank said reports from India also indicated a decline in demand for crude.
However, both benchmarks recovered last week after falling 7 percent early in the week, and recorded their first weekly gains in two to three weeks, supported by strong US demand and expectations of tight supplies.
Investors are looking forward to the upcoming Federal Reserve meeting and the latest data on US crude inventories due later this week to determine the direction of prices.


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