- Crude oil prices turn south after a two-day rally.
- Saudi Arabia and Oman call for continued cooperation from OPEC +.
- The spread of the delta variant of the coronavirus rekindles concerns about the unstable recovery in energy demand.
Crude prices saw a strong rally before the weekend and the West Texas Intermediate barrel closed the final two days of the week in positive territory, gaining more than 3% in that period. However, after rising towards $ 75 during Asian trading hours on Monday, WTI lost traction and fell to $ 73.14 before recovering modestly. At time of writing, WTI was down 1.4% on the day at $ 73.60.
Renewed concerns about the spread of the delta variant of the coronavirus, delaying reopening efforts in major economies and weighing on the outlook for energy demand, appear to be hurting crude oil prices earlier in the week.
Meanwhile, in a joint statement released Monday, Saudi Arabia and Oman praised OPEC + ‘s efforts to stabilize the balance of oil markets despite demand for the week due to the pandemic. In addition, the Gulf states emphasized the need for continued cooperation from producers to support the stability of oil markets. However, this statement does not appear to have a significant impact on oil prices.
Later in the week, weekly crude oil stock data from the American Petroleum Institute (API) and the United States Energy Information Administration (EIA) will be analyzed for further momentum.
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