A major U.S. power outage occurred on Monday after the pipeline network was restored. Oil prices have risen sharply, however, new regulations in Asia have raised sentiment amid rising COVID-19 cases.
Brent crude futures rose 3 paise to $ 68.74 a dollar in early trade at $ 68.74 a dollar, while West Texas Intermediate (WTI) crude was up 8 paise, or 0.1%, at $ 65.45.
Both contracts rose nearly 2.5% on Friday, recording a small gain last week, marking the third consecutive weekly increase.
“While a new wave of controls to control the epidemic in Asia is easing market sentiment, the market today has no clear direction,” said Sador Yoshida, a commodity analyst at Raguden Securities.
Investors were wary that the highly contagious coronavirus variant, first detected in India, could spread to other countries.
Some Indian states on Sunday said they would extend the COVID-19 locks to help control the epidemic, which has killed more than 270,000 people in the country. There are fears that the country’s annual budget will be flattened as the second wave of COVID-19 infections paralyzes.
Singapore warned on Sunday that new coronavirus strains are affecting more children, and the city government has declared a state of emergency in three more provinces that have been hit hard by the Japanese epidemic.
Raghudan’s Yoshida says cheating retail data from China has increased pressure. Chinese retail sales rose 17.7% in April, from 24.8% a year earlier.
China’s crude oil production rose 7.5% in April from the same month a year ago but was far from the peak seen in the last quarter of 2020.
“Brent prices are expected to be in the trading range this week, with support expected to reach $ 63 a barrel on concerns of an epidemic spreading across Asia Mount.”
Kazuhiko Saito, chief analyst at Fujidomi Co., a commodity broker.
Meanwhile, the U.S. Energy companies added oil and natural gas rigs for the third week in a row as higher crude prices push some training to velvet, energy service provider Baker Hughes Co said Friday.
In the Middle East, Israel and Gaza’s ruling Hamas militant group faced international calls for a ceasefire in the hostile war that entered its second week on Monday.
“Until the war spreads to the oil-producing countries in the region, there will be a definite impact on the oil market,” said Fujidomo’s Saito.