After the massive sale on Thursday, oil prices fell again on Friday morning, with the bearish sentiment continuing to remain on the market.
As of 9:47 am EDT on Friday, WTI oil prices fell 0.83 percent to $ 59.53, and Brent oil was trading at 1.09 percent below $ 62.63, as they prevailed concerns about short-term oil demand.
On Thursday, oil prices fell 9 percent at one point before Brent settled 7 percent on the day.
“From a fundamental perspective, there was little behind yesterday’s change. The market is getting more and more nervous around some European countries imposing restrictions related to Covid-19 once again and, in doing so, raising concerns about the demand outlook, ”said ING strategists Warren Patterson and Wenyu Yao on Friday, noting that the main reason behind Thursday’s drop in prices was the rise in US treasury yields and the appreciation of the US dollar.
The higher dollar has weighed on the oil market all week, as a stronger dollar makes crude oil more expensive for holders of other currencies.
Some profit-taking is also pushing oil prices down, while market participants are focused on negative short-term signs than on more optimistic expectations for a robust recovery in oil demand later this year. Related: Oil sees biggest single-day loss since April 2020
The spot oil market for physical barrels in the main demand region, Asia, is also showing signs of weakness, as it started to weaken in the middle of this week, with purchases from moderate Chinese buyers, traders tell Bloomberg.
Recent interruptions in the EU’s vaccination programs have also left traders and speculators concerned that setbacks could delay the reopening of major economies, including travel abroad. Most EU countries that have suspended vaccinations with the AstraZeneca vaccine because of concerns about blood clots are resuming vaccines after the European Medicines Agency (EMA) said on Thursday, again after a new review, that the vaccine it’s safe.
However, the blockades in Europe are not over. France ordered a blockade in Paris and 16 other areas for four weeks starting on Friday, putting 21 million people, or about a third of its population, in block again for fear of a third wave of COVID-19 cases. .
By Tsvetana Paraskova for Oilprice.com
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