Opening salvos in Asia found Oil depleted by fears of the new “Delta” mutation of the Coronavirus. This, in turn, dropped oil demands and other services markets. As this situation was developing throughout the day, many experts turned their attention to the OPEC committee meeting results which, they hope, will balance fears.
Brent Oil Futures fell 0.38% to $73.86 by 10:20 PM ET (2:20 AM GMT), while Crude Oil WTI Futures dropped 0.32% to $72.68. Crude Oil inclined about 10% so far in June, as this was largely a result of the economic rebound from COVID-19 the markets are experiencing lately. The U.S. and China have seen prominent gains this month especially.
Contrasting this growth, we saw the largest daily number of COVID cases we’ve seen since the beginning of this year. Not only this, but Hong Kong, Spain and Portugal banned all passenger flights leaving their countries in an effort to stave off multiplying numbers of COVID cases. This has had the added, negative impact, of fluctuating many markets associated with these countries. In other news, Sydney, Darwin, Perth and Brisbane, located in Australia, reengaged some of their more stringent lockdown procedures to help stop the unmitigated spread of the new variant.
Though, concerning supplies of Oil, OPEC+ is predicted to hike supplies by 500,000 to 1 million barrels a day in August.
OPEC’s itinerary is purported to contain an estimation of how supply deficit is to be managed or maintained through the latter half of 2021. It looks like the overall demand that markets are placing on oil in August alone is going to outstrip supplies by almost 2 million barrels a day, MetaNews reports. Opening salvos in Asia found Oil depleted by fears of the new “Delta” strain.