Original title: Energy demand concerns caused by the epidemic eased crude oil futures rebounded from lows and closed up sharply Source: Financial World Network
According to news from the financial community network on August 11, investors have eased concerns about demand caused by the global spread of the new crown variant virus. At the same time, crude oil futures rebounded after the July low after a sharp sell-off, and crude oil futures closed higher.
West Texas Intermediate for September delivery on the New York Mercantile Exchange rose 1.81 US dollars to close at 68.29 US dollars a barrel, an increase of 2.7%. The October Brent crude oil price on the ICE European Futures Exchange rose 1.59 US dollars to close at 70.63 US dollars per barrel, an increase of 2.3%. West Texas Intermediate crude oil and Brent crude oil fell to an intraday low on Monday, with a drop of more than 4%, and then narrowed the decline to close at the lowest level since July 19.
Edward Moya, senior market analyst at Oanda, said in a research report: “With the end of the plunge caused by concerns about changes in Delta crude oil varieties, crude oil prices are rebounding.”
As the stock market rebounded, investors in various assets seemed to welcome the Senate’s approval of an infrastructure package and submitted it to the House of Representatives. “Most of the crude oil news is constructive, but the main driving factor is the overall risk theme, which stems from the bipartisan US$1 trillion bill on infrastructure spending passed by the Senate,” Moya said.
The bill called “Infrastructure Investment and Employment Act” requires $550 billion in new public expenditures to exceed estimates, including $110 billion for roads, bridges and other projects, as well as $66 billion for railways, 65 billion for broadband Internet and 55 billion USD water system.
Tom Essaye, the founder of Sevens Report, stated in a report that the July West Texas Intermediate (WTI) contract closed above the July low of $66.41 on Monday, marking this level as “the oil market’s” Bottom line'”. He said: “If the support is maintained (as long as the news about the new crown pneumonia does not continue to substantively deteriorate), WTI will remain in the range between the aforementioned support level of $66 and the resistance level of $75 per barrel since July.”
Investors will also pay close attention to weekly inventory data, and the American Petroleum Institute is expected to release the data later on Tuesday afternoon. The US Energy Information Administration will release official inventory data on Wednesday morning. Analysts surveyed by Platts Energy Information predict on average that EIA data will show that US crude oil supplies will decrease by 600,000 barrels last week, gasoline stocks are expected to decrease by 2.4 million barrels, and distillate stocks are expected to decrease by 600,000 barrels. As of the week of August 6, the refinery utilization rate is expected to rise to 91.6% from 91.3% in the previous week.
Among other energy products traded on the exchange, gasoline rose 1.5% to close at $2.2679 per gallon in September, and heating oil rose 1.9% to close at $2.0802 per gallon in September. Natural gas in September closed at US$4.0890 per million British thermal units, up 0.7%.
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