In the European market on Tuesday (July 20), United States crude oil futures prices stabilized, and also on Monday (July 19) dropped almost 7%. Last weekend break, the Organization of Petroleum Exporting Countries and its allies (OPEC+) oil-producing countries authorized a brand-new supply The agreement reduced short-term supply stress as well as brought about a retreat of high oil prices. In addition, financiers' issues regarding the reoccurrence of the brand-new crown virus infection have actually brought about a sharp drop in oil costs.

As of press time, the US petroleum futures cost was reported at 66.42 United States dollars/barrel, down 0.21%, and the Brent crude oil futures price was reported at 68.60 US dollars/barrel, down 0.06%.

Royal Bank of Canada Capital Markets (RBC Capital Markets) said in a report that the selling pressure pushed crude oil prices to a two-month low, mainly as a result of market problems about the delta variant virus as well as the macro background, instead of the future. A major reflection on the principles of oil.

Earlier, OPEC+ got to a compromise on raising manufacturing on Sunday, yet Royal Bank of Canada claimed that this was more of an "unfavorable coincidence, not a driver," and also mentioned that the global stock market dropped greatly and also the bond market rose. United States officials said on Friday that the delta variation of the brand-new coronavirus is a lot more contagious than previous viruses and is currently the main strain of the infection worldwide.

Roughly 100 countries around the world have uncovered this virus. Several countries have actually introduced inoculation programs uncoordinatedly, which are interfering with the battle against this virus as well as boosting the possibility of more blockades, which will battle the demand for petroleum products.

The United States has actually included at the very least 56,898 new confirmed situations of brand-new coronary pneumonia, with an overall of 34.31 million new situations, and a minimum of 213 brand-new fatalities, with a total of 608,126. Germany added 1,183 confirmed cases of new crowns, a total amount of 3,746,410, as well as 34 brand-new deaths from new crowns, an overall of 91397.

The US State Department as well as the Centers for Disease Control and also Prevention specified that people must prevent traveling to the UK and increase the caution degree to "Level 4". The US Centers for Disease Control as well as Prevention advises that vacationers that need to take a trip to the UK ought to be fully vaccinated due to the fact that instances on both sides of the Atlantic get on the surge.

On July 19, local time, French government spokesman Adal stated that France has actually now entered the fourth round of the epidemic, and also the spread of the new crown infection is very quick, this time it has actually increased faster than the previous 3 waves. Presently, the delta variant virus has accounted for 80% of the contaminated people in France. The French federal government contacts the general public to be vaccinated immediately to deal with the rapid development of the epidemic.

Regardless of this, Royal Bank of Canada stated that high frequency indications show that restaurant reservations in the US on weekends are at the level prior to the outbreak of the new crown epidemic, while domestic flights are at the highest level because the beginning of the epidemic. The United States is the world's largest oil consumer.

Analysts think that the short-term decrease in oil rates driven by over night panic has actually been excessive. As a matter of fact, the present global epidemic may without a doubt impact the demand in some nations and areas, but this will just slow down but will not turn around the ongoing higher fad of petroleum demand, so There is still require for short-term oil prices rebounding, and there is a high probability that United States petroleum will rise to the $70 line in the future. During that time, the market will once again compare the outlook for adjustments in international supply and need to examine the instructions of the following market fad.

UBS strategists are still hopeful regarding oil prices. After OPEC+ reaches a contract to boost manufacturing, the market emphasis need to change from supply to increased demand. Demand seems solid this summer. On top of that, result growth will certainly not be static. If liquidity limitations are recovered, result Growth might be turned around.

With the verdict of the agreement, investors have a more clear understanding of global crude oil supply in the moderate and also brief term. Attention ought to now transform to financial reopening; preliminary information reveals that oil demand will increase, particularly in the United States and Europe. It is still expected that international day-to-day crude oil demand will certainly exceed 99 million barrels this year.

The financial institution mentioned that OPEC+ will hold its next meeting on September 1. OPEC+ might put on hold or even end its decision to enhance oil supply if the spread of the delta brand-new coronavirus stress activates new liquidity restrictions and decreases oil demand. With decreasing manufacturing ability, some nations may not be able to boost production on a monthly basis. The assistance for enhancing production is not fixed. Rather, it sends a signal to non-OPEC oil-producing countries to think about these objectives when formulating their 2022 manufacturing strategy.

The latest information from the CME Group crude oil futures market revealed that Monday's petroleum open rate of interest fell for the fourth consecutive day, this time around down concerning 23,700. On the other hand, the trading quantity finished its two consecutive decreases, a boost of nearly 625,000 contracts.

Last weekend, the Organization of Petroleum Exporting Countries and its allies (OPEC+) oil-producing nations signed a brand-new supply The arrangement reduced short-term supply pressure as well as led to a retreat of high oil rates. In addition, financiers' concerns concerning the reoccurrence of the new crown virus infection have led to a sharp drop in oil rates.

Analysts believe that the temporary decrease in oil rates driven by overnight panic has been too much. Attention needs to now turn to financial resuming; preliminary data shows that oil demand will rise, especially in the United States as well as Europe. If the spread of the delta brand-new coronavirus pressure activates brand-new liquidity constraints as well as decreases oil need, OPEC+ may put on hold or also terminate its decision to raise oil supply.