WTI Crude Oil Set to Post Weekly Decline as Europe’s Concerns Dominate
WTI crude oil prices have posted a slight recovery early on Friday but are all set to end the week in red over rising concerns about a possible delay in economic recovery from the pandemic across Europe, which in turn would keep oil demand weak for longer. At the time of writing, WTI crude oil is trading at around $60.12 per barrel.
During the previous session alone, crude oil declined by as much as 7% and they are down by over 8% so far this week. The weakness was driven by markets’ worries that the vaccine rollout across Europe was slowing down, following some countries’ decision to suspend the use of the AstraZeneca vaccine.
Even as upgrade forecasts peg a faster than expected economic recovery in the world’s largest energy consumer, US, traders are turning their attention towards the situation in Europe which continues to grapple with a rise in infections. Unlike in the US, Europe is also facing considerable challenges with regards to the rollout of stimulus support and its vaccine distribution program also appears to be slowing down.
European countries are still imposing lockdowns and restrictions, which are likely to keep oil demand subdued, sending crude oil prices on a bearish trend. The outlook in oil markets was further clouded by a rise in cases across Brazil, even as the US dollar gains strength and exerts further downward pressure on oil prices.
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