Crude oil futures went down more than one percent on Tuesday due to trimming of positions by traders amid weak spot demand. At 1330 hours GMT, Brent, the international benchmark for two-thirds of the world’s oil, was trading at $67.34 a barrel after shedding 1.60 percent. Likewise, the US West Texas Intermediate (WTI) crude futures shed 1.76 percent to reach $63.78 a barrel. The price for Opec Basket was recorded at $66.57 a barrel with 2.39 percent decrease, Arab Light was available at $67.17 a barrel with 1.58 percent decrease while price of Russian Sokol decreased 1.58 percent to reach $66.81 a barrel.
Brent crude has risen over 30 percent this year due to supply cuts by the Organisation of the Petroleum Exporting Countries and allies, known as OPEC+, and easing coronavirus movement restrictions in the United States and Europe.
But the worsening pandemic developments in Asia have weighed. Indian coronavirus infections and deaths held close to record daily highs on Monday. While some analysts have said oil demand may never reach pre-pandemic levels, Goldman Sachs said it expected this by the end of the year and predicted Brent would hit $80 and WTI $77 within six months.
According to oil experts, a return to $70 oil is edging closer to becoming a reality. The jump in oil prices came amid expectations of strong demand as western economies reopened. Indeed, anticipation of a pick-up in fuel and energy usage in the United States and Europe over the summer months is running high, they said. The rise in oil prices to nearly two-month highs has also been supported by Covid-19 vaccine rollouts in the United States and Europe. TLTP
