Oil prices were steady following last week’s gain, as the market was balanced by the concerns over the US-China geopolitical relationship, along with the signs of additional supply, against the weakening US Dollar and the prospect of the US coronavirus easing.
At 8.35 AM GMT+8, crude futures in the New York Mercantile Exchange for September delivery dropped b 0.1% to USD41.25/barrel after the 0.5% close on Friday. Meanwhile, Brent for September delivery dropped by 0.2% to USD43.24/barrel after advancing by 0.5% last week.
The market is still weighed down by the worsening developments in the US-China geopolitical tensions, threatening the global economy’s recovery from the coronavirus. Indications of an additional US oil output has also been seen as on Friday, Baker Hughes reported that the US drillers increased oil rig count for the first time in four months.
However, the apparent easing of US coronavirus numbers, combined with the weakening US Dollar has helped to balance prices. For the first time in four days, the reported cases and fatalities of coronavirus fell in many of the hardest-hit states including Florida, California, and Texas and the death toll dipped under 1,000.
Going forward, investors are preparing for the incremental supply from the Organization of Petroleum Exporting Countries and its non-member producer allies (OPEC+) relaxing output cut starting in August.
