Oil prices edge higher after sell-off driven by demand concerns

Oil prices rose barely on Friday in a unstable session, following an enormous sell-off the day before today as a brand new wave of infections throughout Europe triggered recent lockdowns and dampened hopes of any imminent recovery in gasoline demand.

Brent crude was up 31 cents, or 0.5 per cent, at $63.59 a barrel by 8:20 pm (IST). West Texas Intermediate (WTI) U.S. crude rose 37 cents, or 0.6 per cent, to $60.37. Both traded inside a variety of greater than $2 a barrel on Friday.

Oil had closed about 7 per cent down on Thursday as a number of massive European economies reimposed lockdowns and vaccination programmes have been slowed by distribution points and concerns over potential unintended effects.

“Concerns are rapidly growing of a mobility-depressing third wave in Europe amid a pause in vaccinations and rapid spread of the B117 mutation that originated in the UK,” JP Morgan mentioned.

Goldman Sachs mentioned headwinds associated to the EU’s demand and Iran’s provide would gradual the oil market rebalancing by 750,000 barrels per day within the second quarter, although it expects the OPEC+ grouping, together with its allies, to take motion to offset the affect of the identical.

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