Oil futures traded mixed as early as Friday, with US oil rising slightly while international benchmark Brent fell, amid growing concerns over increasing supply and weakening demand for energy as markets Global COVID compliance increased in Europe, Brazil and India in particular.
West Texas Intermediate crude for May delivery
gained 2 cents, or less than 0.1%, to $ 59.62 a barrel on the New York Mercantile Exchange, after slipping 0.3% on Thursday.
Energy markets are grappling with signs of an increase in coronaviruses in Europe in particular, even as members of the Organization of the Petroleum Exporting Countries and its allies in a fight. The recent meeting agreed to slowly reduce output.
OPEC +, which includes Russia, agreed to gradually increase the supply by 2 million barrels a day between May and July.
Energy traders predict that demand will rise sharply in the second half of 2021 but questions about COVID variants and problems with the AstraZeneca vaccine have raised some questions about whether an economic recovery will be. how fast it happened.
“However, conflicting signals surrounding the supply of OPEC + back to the market amid a spike in coronavirus infections… along with reports linked to the UK [COVID-19] Stephen Innes, global market strategist at Axi, writes in a daily note.
During the week, WTI is aiming for a weekly drop of nearly 3%, while Brent is on track to drop 2.6% weekly, based on the contract that performs best.
On Thursday, market participants blamed the larger-than-expected weekly increase in US gasoline stocks on weaker oil futures prices.
The Energy Information Administration reported on Wednesday that gasoline supplies were up 4 million barrels, while distillate stocks rose 1.5 million barrels for the week. IHS Markit has forecast an increase in weekly supply of 200,000 barrels for gasoline and 500,000 barrels for distillate.