On Monday, Brent crude oil rose after the worst losing streak since February 2018 amid the newest limitations due to the Delta variant of coronavirus and the US Dollar strength.
In London, futures climbed by 0.5% after on Friday it fell for the seventh session, the worst streak in three years.
Some regions in the world, mainly China, have been tightening mobility restrictions and dim the outlook for demand. The flare-up of the infections has also damaged the futures curve of oil with the prompt time spread for Brent was 44 cents/barrel in backwardations, compares with 92 cents at the end of July.
In the US, the daily average fatalities have soared and the average weekly cases now surpass 1 million. In other parts of the world, Australia and New Zealand were forced to review their strategies of eliminating infections.
Other than that, last week, US Dollar strengthened last week which made raw materials such as oil priced in the currency more expensive.
Looking forward, the Organization of the Petroleum Exporting Countries (OPEC+) might be prompted to reassess its pledge to keep raising oil output each month as renewed lockdowns and curbs on travel dent fuel consumption. The next group meeting is set for September 1.
