Oil Prices Mixed as Virus Spike Casts Shadow Over US Demand
EghtesadOnline: Oil prices offered up a mixed market snapshot on Monday, with Brent crude edging higher, supported by tighter supplies, while US benchmark WTI futures dropped on concern that a spike in coronavirus cases could curb oil demand in the United States.
Brent crude rose 18 cents, or 0.4%, to $42.98 a barrel after a 4.3% gain last week, while US West Texas Intermediate crude was at $40.42, down 23 cents, or 0.6%, from its previous settlement on Thursday. US markets were closed on Friday to mark July 4 holiday celebrations, CNBC reported.
Amid rising numbers of coronavirus cases in 39 US states, in the first four days of July alone, 15 states reported record increases in new Covid-19 infections with parties over the holiday weekend possibly leading to another spike.
For now, analysts at ING bank said data for several cities in affected states show no significant reduction in road traffic week-on-week.
The implied volatility for Brent crude has dropped to the lowest since prices started collapsing in March as some in the market remain focused on tightening supplies as production by the Organization of the Petroleum Exporting Countries fell to its lowest in decades with Russian output dropped to near targeted cuts.