February 27, 2021

Market and Financial News Aggregator

Oil Down, Continues Retreat as Chinese COVID-19 Spike Triggers Fuel Demand Worries By Investing.com

2 min read

© Reuters.

By Gina Lee

Investing.com – Oil was down Friday morning in Asia, continuing a retreat from the previous week’s 11-month highs, over imposes new COVID-19-induced restrictive measures in China and the ensuing fuel demand worries.

slumped 1.21% to $55.42 by 10:36 PM ET (3:36 AM GMT) and slid 1.32% to $52.43. Both Brent and WTI futures remained above the $50 mark, however.

Recovering fuel demand in the world’s biggest oil importer had support the balck liquid’s gain in late 2020, making up for the lagging demand in the U.S. and Europe. However, a new wave of COVID-19 cases in the country has seen the reintroduction of restrictive measures to contain the spread of the virus.

“Indeed, investors are struggling to see through short-term pain for long-term gain heading into the weekend as COVID-19 case counts in China are the most significant demand concern for traders,” Axi chief market strategist Stephen Innes said in a note.

Shanghai reported the first locally transmitted cases in two months on Thursday, and the special administrative region of Hong Kong will reportedly begin its first ever lockdown this weekend in the city’s Yau Tsim Mong district.

Other areas are adopting pre-emptive curbs and In Beijing, residents are being urged not to travel for the upcoming Lunar New Year holiday, when tens of millions of urban workers usually head back to their villages.

Sudden new restrictions globally have badly hit the airline industry, with the number of flights globally down 25% during the previous week, ANZ Research analysts said in a note.

“This is likely to weigh heavily on jet fuel demand,” the note warned.

is due later in the day. The data was delayed by both a holiday and Wednesday’s inauguration of President Joe Biden.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Investing.com


2021-01-21 22:38:54


Read more from source here…

Leave a Reply

Copyright © All rights reserved. | Newsphere by AF themes.