Oil Down, Pauses Recent Rally as Investors Digest Easing U.S. Crude Oil Supplies

imageCommodities2 hours ago (Aug 25, 2021 05:00)

© Reuters.

By Gina Lee

Investing.com – Oil was down Wednesday morning in Asia after its recent rally triggered by the loss of around a quarter of supply from Mexico and indications that China has brought its latest COVID-19 outbreak under control.

Brent oil futures fell 0.62% to $69.97 by 11:52 PM ET (3:52 AM GMT) and WTI futures were down 0.56% to $67.16.

Both Brent and WTI futures climbed around 8% during the past two days, clawing back most of the losses from a seven-day downhill trend. Concerns about the impact of COVID-19 outbreaks globally, which clouded the fuel demand outlook, contributed to the losses.

Sunday’s fire at an offshore oil platform operated by Petróleos Mexicanos (Pemex) slashed supply by around 420,000 barrels as of Monday.

In the U.S., the world’s second-largest oil importer, the American Petroleum Institute released its latest crude oil supply data on Tuesday. The data showed a draw of 1.622 million barrels for the week ending Aug. 20. Forecasts prepared by Investing.com predicted a 2.367-million-barrel draw, while a 1.163-million-barrel draw was recorded during the previous week.

Supply data from the U.S. Energy Information Administration is due later in the day.

In Asia Pacific, there were signs that China, the world’s biggest oil importer, is bringing its latest COVID-19 outbreak under control. The country reported zero local symptomatic COVID-19 infections on Monday for the first time since the outbreak began.

ANZ commodity analysts pointed to a pick-up in traffic in Beijing and Shanghai as evidence of the Delta variant being “stamped out”, ANZ commodity analysts said in a note.

“Nevertheless, improvements in the airline industry may lag amid some ongoing restrictions,” with the loss of Mexican supply equal to planned output increases in August from the Organization of the Petroleum Exporting Countries and allies (OPEC+), the note added.

Oil Down, Pauses Recent Rally as Investors Digest Easing U.S. Crude Oil Supplies

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.


Please enter your comment!
Please enter your name here