EnergyScan

Worsening Covid spread in China to weigh on crude prices

Brent first nearby prices opened Monday’s trading session in negative territory just above the $100/b mark, pressured by a rising number of Covid cases in the Shanghai area with no clarity on when restrictions will be lifted. The massive crude stock releases from strategic reserves announced since the beginning of the month continue to weigh on market sentiment as well.

Nevertheless, surging insurance costs for ships sailing to ports in the Black Sea may hamper the movement of Russian cargoes from the region and tighten further Russian crude oil exports.

Note that the number of active US oil rig increased to a two-year high at 546 according to Baker Hughes figures released on Friday, suggesting that U.S. producers might have decided to start ramping up activity significantly. As a reminder, US crude oil production increased to a year-to-date high at 11.8 Mbd last week, but still below their pre-covid level at 13 Mbd.

Share this news :
Share on twitter
Share on linkedin
Share on email

You might also read :

ES-gas
July 5, 2021

Global gas prices correct downwards

European and Asian gas prices retraced some of their strong gains recorded earlier in the week on Friday. Spot prices also weakened slightly on the…
Join EnergyScan

Get more analysis and data with our Premium subscription

Ask for a free trial here

Don’t have an account yet?  Sign up here!

[booked-calendar]