Tight physical market overrides prospect of increased supply and rising Covid-19 cases weakening demand outlook
The MTM Savannah oil and chemical tanker, left, and another vessel wait to enter the Suez Canal in Egypt. Picture: BLOOMBERG/ISLAM SAFWAT
In a sign of tight supply, crude inventories in the US are expected to fall for a ninth week. Oil cartel Opec expects world demand to grow by 6.6% in 2021, with the expansion focused on the second half of the year. Brent crude gained 82c, or 1.2%, to $69.44/bbl by 8.10am GMT after sliding 6.8% on Monday. US crude for delivery in August, which expires later on Tuesday, was up 93c, or 1.4%, at $67.35, after falling 7.5% on Monday. The September US crude contract was up 1% at $67.01.
Monday’s sell-off, which pushed oil to its lowest in two months and hit other risk assets such as equities, was driven by concern that rising Covid-19 infections could cause demand to weaken again, just as OPEC+ has decided to add supply.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Weaker Asian markets await JSE on Monday amid Covid-19 fearsRising infections in countries including the US have raised concern as SA counts cost of violence
Read more »
Oil falls sharply after Opec+ agrees to boost outputConcerns emerge about a crude surplus as Covid-19 infections rise in many countries
Read more »
Opec agrees to deal to inject more oil into the recovering global economyThe deal, reached at a hastily convened meeting on Sunday, allows for monthly supply hikes of 400,000 barrels a day
Read more »
Opec agrees to deal to inject more oil into the recovering global economyThe deal, reached at a hastily convened meeting on Sunday, allows for monthly supply hikes of 400,000 barrels a day
Read more »
WATCH | Police recover looted goods including beds, electronic goods and mag wheelsOn Monday police recovered thousands of rands worth of items stolen from warehouses and retail stores in Durban during widespread looting last week.
Read more »
WATCH | Police recover looted goods including beds, electronic goods and mag wheelsOn Monday police recovered thousands of rands worth of items stolen from warehouses and retail stores in Durban during widespread looting in KwaZulu-Natal last week.
Read more »