The price of a barrel of West Texas Intermediate crude oil for August delivery on the New York Fuel Exchange is $67.33, an increase of 1.04 percent. The price of West Texas Intermediate crude fell 7.5 percent during the previous session. The largest number in about a year.
Brent crude for September delivery on the European fuel exchange ICE Futures Europe in London was priced at $69.50 a barrel, an increase of 1.25 percent. On Monday, Brent crude fell 6.8 percent, the largest drop since March. Brent crude was at its lowest level since May.
In the short term, a significant decline is still likely. In the longer term, the delta variable could slow the global recovery, said Jeffrey Haley, an analyst at Oanda Asia Pacific.
The RBC Capital Markets report stated that the sell-off was largely driven by concerns centered on the delta variable and the macro environment rather than a rethinking of the outlook for oil fundamentals.
RBC analysts noted that high frequency rates showed that weekend restaurant reservations in the United States, the world’s largest consumer of crude oil, were at pre-pandemic levels, while domestic flights were at their highest since the pandemic began.
The Organization of the Petroleum Exporting Countries (OPEC) and its non-OPEC allies reached an agreement on Sunday to increase production by 400,000 tons from August. barrels per day.
At the Sunday meeting of the ministers of the Organization of Petroleum Exporting Countries (OPEC) and the cooperating countries (OPEC Plus), it was also decided to increase the specific extraction limits for Iraq, Kuwait, Russia, Saudi Arabia and the Arab Gulf states. The United Arab Emirates.
Copper on the London Metal Exchange grew 0.5% in 3-month deliveries. It comes to $9,268 per ton.
Risk aversion dominates the market with increasing uncertainty about the outlook for global economic growth. Meanwhile, copper prices may come under pressure as China prepares to release another batch of mineral reserves, Jinrui Futures report said.