Investing.com - Financial Markets Worldwide
💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Oil falls as European lockdowns douse recovery hopes

Published 03/22/2021, 09:56 AM
Updated 03/22/2021, 10:00 AM
© Reuters.
LCO
-
CL
-

TOKYO, March 22 (Reuters) - Oil prices resumed their decline
on Monday, falling around 1% as worries about a drop in demand
for fuel products in the wake of yet more European lockdowns
dominated trading.
Brent crude LCOc1 was down 60 cents, or 0.9%, at $63.93 a
barrel by 0136 GMT. U.S. oil CLc1 was off by 68 cents, or
1.1%, at $60.74 a barrel. Both contracts fell by more than 6%
last week.
Germany plans to extend a lockdown to contain COVID-19
infections into a fifth month, according to a draft proposal,
after new cases exceeded levels authorities say will cause
hospitals to be overstretched. "The reality is that we're still a long way from a full
demand recovery, and it's the record levels of withdrawn
production capacity that's the main prop for the oil market,"
said Stephen Innes, chief global market strategist at Axi.
The Organization of the Petroleum Exporting Countries and
its allies have put in place unprecedented production cuts in a
pact to balance global markets after demand plunged during the
COVID-19 pandemic.
U.S. drillers are starting to take advantage of an earlier
spike in prices on optimism about returning demand, adding the
most rigs for extracting oil since January in the week through
Friday.
The oil and gas drilling rig tally, an early indicator of
future production, rose nine to 411 last week, the highest since
April, energy services firm Baker Hughes Co BKR.N said in its
closely followed report on Friday.
The rig count has been rising over the past seven months and
is up nearly 70% from a record low of 244 in August.

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.