Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Crude Oil Lower; Lockdowns and Japanese Reserves Weigh

CommoditiesNov 22, 2021 22:22
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters

By Peter Nurse   

Investing.com -- Oil prices weakened Monday, continuing the recent selloff as Covid-related lockdowns in Europe and the potential release of supply from Japanese strategic reserves weighed on the market.

By 9:05 AM ET (1405 GMT), U.S. crude futures traded 0.8% lower at $75.31 a barrel, while the Brent contract fell 0.8% to $78.31. Both benchmarks hit their lowest levels since the start of October earlier in the session, having fallen around 3% on Friday. 

U.S. Gasoline RBOB Futures were up 0.1% at $2.2125 a gallon.

The prospect of a global coordinated release of oil from strategic petroleum reserves took a step closer to reality after Japanese Prime Minister Fumio Kishida said over the weekend that he was ready to help with efforts to combat soaring oil prices.

News emerged last week that the United States had contacted a group of top consumers over the possibility of these countries releasing oil from their emergency stockpiles. China has already said it is considering such a move.

Adding to the negative sentiment was the return of lockdowns to Europe, with Austria leading the way as nations enact strict measures to reverse the latest wave of rising Covid-10 cases.

Germany, Europe’s largest economy, has also refused to rule out the return to a national lockdown, with Chancellor Angela Merkel calling the latest surge worse than anything the country has experienced so far.

To complicate matters, riots broke out over the weekend in cities across the Netherlands and protesters clashed in the streets of Brussels in demonstrations over  government-imposed restrictions, suggesting governments could have difficulties getting the new wave under control.

“Investors should recognize that the fundamental cause for the rise in oil prices has been the restart of oil demand,” said Naeem Aslam, the chief market analyst at AvaTrade.

 “As a result, any threat to demand would certainly destabilize markets and drive down oil prices. If the newly reported coronavirus cases spread outside Austria, the oil market may see an overstock, causing prices to fall.”

 

 

Crude Oil Lower; Lockdowns and Japanese Reserves Weigh
 

Related Articles

Energy Precious Metals - Weekly Review and Outlook
Energy Precious Metals - Weekly Review and Outlook By Investing.com - Jan 16, 2022

By Barani Krishnan Investing.com -- How do we know when irrational exuberance has unduly escalated asset values, which then become subject to unexpected and prolonged...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
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.
Continue with Google
or
Sign up with Email