Citizen – Riyadh
On Tuesday, oil prices witnessed cautious optimism, as US crude maintained losses near $69 a barrel, while Brent crude witnessed some recovery above $72.
Investors assessed demand expectations still clouded by the resurgence of the Covid-19 virus in many regions.
West Texas Crude
US West Texas Intermediate crude futures in New York lost 0.2% from Friday’s closing level, after trading was halted on Monday due to a holiday in the United States.
The fast-spreading delta mutant of the virus has led to renewed restrictions on movement in some areas, although there are signs of recovery.
Chinese trade data
Markets are expected to react to strong Chinese trade data for August released on Tuesday, which gives an indication of the economic strength of the world’s largest oil importer.
The market opened lower on Monday, after Saudi Arabia cut its crude prices to Asia next month more than expected, surprising traders and raising concerns about the demand picture in the short term.
European demand recovery
Rising oil prices have faced severe headwinds over the past two months, after prices surged more than 50% during the first half of the year. And while delta has reduced demand, there are expectations that the market will tighten through the rest of 2021. OPEC+ is betting that the recovery will accelerate, and agreed last week to continue boosting supply every month.
On the other hand, European demand for oil rebounded after months of lockdown due to the virus which led to a significant downsizing of the continent’s refining industry. Delta continues to affect across Asia, with Singapore facing rising cases once again.
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