Oil continues to recover despite the continuation of the “delta” wave


Oil prices stabilized on Tuesday morning, after jumping more than 5% in trading yesterday, amid a broader recovery in the market despite the continued spread of the Covid-19 virus.

West Texas Intermediate crude futures were trading in New York near $ 66 a barrel, while Brent crude was trading near $ 69 a barrel, after crude rose for the first time in eight sessions yesterday, to cut Worst losing streak Since October 2019.

And the delta variant continues to sweep new regions, leading to renewed restrictions on movement, as Chinese airlines plan to operate the lowest number of flights this August since February, according to data from Cirium, in the wake of the recent outbreak of the virus.

In Malaysia, infections are mounting and threaten to exacerbate shortages of semiconductors and other components that have plagued automakers for months.

The strong return to the outbreak of the epidemic has halted the rise of oil and may prompt OPEC+ to re-evaluate its plan to return additional barrels each month, until all production halted by the epidemic is revived. The alliance is scheduled to meet on the first of September.

However, Goldman Sachs emphasized that delta’s effect on demand will be transient and that prices should rise.

Later this week, investors are also looking forward to the Jackson Hole Symposium – which will actually take place from Thursday – which may provide insights into how the Federal Reserve plans to scale back stimulus.


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