Oil futures tried to climb for a fifth straight Friday but are now seeing a lackluster trade as investors weigh on a strong economic report from China based on evidence of Increased COVID cases in many parts of the world, threatening proper recovery from a pandemic cut in demand.
Energy markets have so far been supported by monthly reports suggesting a healthy recovery from the pandemic, as well as tensions between the US and Iran and Russia, could have some impact on the market. crude oil.
On Friday, West Texas Intermediate crude for May delivery
fell 13 cents, or 0.2 percent, to $ 63.33 a barrel on the New York Mercantile Exchange after rising 0.5 percent a day ago.
June Brent crude oil
is trading barely flat at $ 66.95 / barrel on ICE Futures Europe and hit a remarkable intraday high on Friday above $ 67, after the global benchmark rose 0.5% on Thursday.
For the week, WTI is looking at a weekly gain of 6.8%, while Brent is on track to gain 6.4%, based on the most active contracts, FactSet data shows. That weekly profit will mark the best gains for contracts since the week ending March 5.
On Friday, the focus was on China, which reported that the country’s first quarter gross domestic product grew 18.3% year-on-year. A report on retail sales of the People’s Republic, one of the largest crude oil importers, also showed an increase of more than 34%.
However, global COVID cases remain a major concern. Bloomberg reports that Germany’s healthcare system is becoming strained, with many hospitals overloaded with COVID patients and the number of cases increased.
Traders also keep an eye on talks between the US and Iran amid talks towards a new nuclear deal. US sanctions against Russia, before allegations of election interference and hacking, are being weighed on their impact on energy trade. Russia is one of the largest crude oil producers in the world and is a member of the OPEC + group, comprising members of the Organization of Petroleum Exporting Countries and their allies.
But oil markets are based on optimistic data.
On Wednesday, International Energy Agency dismantled Its demand outlook for crude oil and a US government report found weekly inventories fell Tuesday.
In its monthly report, the International Energy Agency Its prediction enhancement for global oil demand in 2021 an increase of 230,000 barrels / day compared with the previous forecast. It currently sees an increase of 5.7 million barrels a day from 2020 to 96.7 million barrels a day this year. Meanwhile, the Organization of Petroleum Exporting Countries on Tuesday raised its forecast for global economic growth from 5.1% to 5.4%.
In a weekly report also released Wednesday, the Energy Information Administration reported that US crude inventories fell increased by 5.9 million barrels for the week ending April 9. That dragged down supply for the previous two weeks.