Oil & Gas News

Oil firms after slide but COVID-19 and supply concerns remain

oil, crude supply

By: Reuters – Oil edged up towards $69 a barrel on Tuesday as a tight physical market offset some of the COVID-19 and OPEC+ supply concerns behind the previous session’s 7% slide.

In a sign of tight supply, crude inventories in the United States are expected to fall for the ninth week. OPEC expects world oil demand to grow by 6.6% in 2021 with the expansion focused on the second half of the year.

“Global demand still appears to be recovering dynamically, so the oil market should end up in supply deficit in the coming months despite the production hikes to be implemented by OPEC+,” said Eugen Weinberg of Commerzbank.

Brent crude gained 22 cents, or 0.3%, to $68.84 a barrel by 1125 GMT, having slid by 6.8% on Monday. U.S. crude for August, which expires later on Tuesday, was up 21 cents, or 0.3%, at $66.63 after falling 7.5% on Monday. The September U.S. crude contract was down 0.2% at $66.21.

Monday’s selloff, which pushed oil to a two-month low and hit other risk assets, such as equities, was driven by concern that rising COVID-19 infections could cause demand to weaken again just when OPEC+ has decided to increase supply.

“As things stand, it is hard to see prices staging a comeback unless virus jitters are brought back under control,” said Stephen Brennock of oil broker PVM.

The Organization of the Petroleum Exporting Countries (OPEC) and its allies, a group known as OPEC+, agreed on Sunday to increase output from August, unwinding more of the supply curbs put in place when the pandemic struck last year. read more

The Delta coronavirus variant is now the dominant strain worldwide, U.S. officials said on Friday. read more

Still, Julius Baer analyst Carsten Menke said it was unlikely to jeopardize the recovery of global growth, though it could cause “regional hiccups”.

The crossroads of energy information for minerals owners in Oklahoma. Where you can: See recent prices of mineral and lease transactions. Receive an offer to lease or buy your minerals.

Find relevant news stories on the most active areas, including the Scoop and Stack Plays.

Data Powered by Oseberg

Today’s E&P world is rapidly shifting towards data-driven decision making, but those decisions are only as good as the data behind them. Access Oseberg's deep, accurate, and detailed pool of insight-rich industry data with our powerful analytical and search tools and get the clearest picture of what's happening as soon as it happens.


This web site is maintained solely for the personal use of our visitors. Although we at Oklahoma Minerals have made all reasonable efforts to provide accurate information, we cannot guarantee the completeness, timeliness or accuracy of the information contained herein. Nothing in this web site contains investment advice. Any decisions based upon the information contained in this web site are the sole responsibility of the user.

Copyright © 2021 OklahomaMinerals.com

To Top
Natural Gas Futures 'Reinvigorated' by Weekend Cold Shift as Prices Soar EarlyRead More