Oil prices showing a mixed market direction with Brent climbing up as supported by tighter supplies, while WTI sinking from the concern whether coronavirus cases number recent hike can block U.S oil demand. Brent crude LCOc1 up by 0.3% or $0.11 to $42.91/barrel by Monday, July 6 0109 GMT after last week’s gain of 4.3%. U.S WTI crude CLc1 down 0.7% or $0.30 to $40.35/barrel from Thursday, July 2 settlement, since Friday market was closed due to the 4th of July celebrations.
Through the first four days of July, the U.S reported a spike in its 15 states while from end of June, the number of states reported increasing positive cases is 39. The 4th of July holiday weekend increases the concern of another spike along with the independence day holiday parties tradition boosting the possibility of new infections.
Some market players are still focusing on tightening supplies as OPEC+ productions is lowered down with Russian output dropping to near targeted cuts. OPEC+ members agreed to cut their productions by 9.7 million barrel/day since May. After July, the production cuts will loosen to a 7.7 million barrel/day until the end of the year. The world’s largest oil production country, the U.S, also decreasing the production as the number of operating rigs for oil and natural gas touched an all-time low for nine consecutive weeks. The downtrend still persists even though higher oil prices alluring some producers to start drilling again.
