2021/03/25

Demand on Crude Oil As Lockdown Pressure Again

 

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At the info front, the EIA petroleum supply data showed a build of 1.912 million barrels within the week to Saint Joseph against forecasts for a 272,000-million-barrel draw and a 2.3 million barrel build, which was reported within the previous week.


During Thursday’s Asian trading session, WTI petroleum did not stop its previous four-day streak and remains depressed around below the $60.00 level amid concerns over the fresh COVID-19-induced lockdowns in Europe, which successively , re-triggered fuel demand worries and contributed to the petroleum losses. Furthermore, the petroleum losses were bolstered after the EIA petroleum supply data showed a build of 1.912 million barrels within the week to Saint Joseph . Across the Atlantic, the rationale for the heavy losses in petroleum prices could even be tied to the newest report suggesting that India – the third biggest oil consumer reported its highest one-day tally of latest infections and deaths. Besides this, the broad-based U.S. dollar bullish bias, backed by the fears over the third wave of COVID-19 cases and a delayed vaccine rollout, was also seen together of the key factors that kept the petroleum prices struggling because the price of oil is inversely associated with the worth of the U.S. dollar.


Conversely, the upbeat market mood, backed by the vaccine optimism and hopes of faster grow economic recovery, It's helps the higher-yielding petroleum to limit its deeper losses. Also capping the losses might be the reports suggesting that Ever Given got stuck within the Suez Canal , blocking the waterway for 10 tankers carrying 13 million oil barrels. However, the world’s most vital waterway blockage and therefore the U.S. supply data were faded by increasing COVID-19 and fuel demand worries. At the instant , petroleum is trading at $59.91 and consolidating within the range between 59.88 and 60.87.


It's worth recalling that the American Petroleum Institute’s data released the day before showed a build of two .927 million barrels. 

At the in front of  coronavirus , the 3rd-wave  diseases is getting more serious day by day, which as a result, the fresh COVID-19-induced lockdowns in Europe re-triggered fuel demand pressure. Meanwhile, India (the 3rd-biggest oil consumer) recorded its highest one-day tally of latest infections and deaths on Wednesday, raising further doubts about the fuel demand worries. As we all know , the fuel demand worries getting increase and costs are falling; there are growing hopes that the Organization of the Petroleum Exporting Countries and allies, or OPEC+, will continue their current supply curbs into May  when the cartel convenes on 1st April 2021 .


The bearish petroleum prices could even be related to the doubts over the Sino-American trade deals, which successively weighs on the danger sentiment and contributes to the higher-yielding petroleum losses. Despite these negative factors, the market trading sentiment represents positive performance on the day because the positive environment round the Asia-Pacific stocks and upticks within the S&P 500 Futures tend to spotlight the risk-on mood being supportive by the newest renewed vaccine optimism and hopes of faster economic recovery. This came after the Anglo-Swedish drugmaker AstraZeneca’s vaccine showed 76% efficacy over the coronavirus (COVID-19) and 100% ability to battle the virus headline . Furthermore, the rationale for the risk-on market sentiment could even be related to the U.S. Senate’s latest voting on the extension of the Paycheck Protection Program (PPP) after the March 31 expiry and hints over a $3.0 trillion infrastructure spending plan. However, these positive headlines help the petroleum prices to limit their deeper losses, a minimum of for the nonce .


At the USD front, the broad-based U.S. dollar managed to increase its previous day’s positive moves.

It remained well bids on the day amid concerns over a third- COVID-19 attack in Europe, potential United States tax hikes, and escalating tensions between the West and China, which triggered safe-haven demand and contributed to the greenback gains. However, the U.S. dollar rose, making commodities priced within the currency costlier , which became the key factor that kept the petroleum prices struggling . Meanwhile, the U.S. Dollar Index that tracks the greenback against a bucket of other currencies rose by 0.04% to 92.650 by 9:53 PM ET (1:53 AM GMT). Looking forward, the traders will keep their eyes on the US GDP and speeches from the central bankers of the U.S., Europe, and the U.K. 


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