Pessimism pushes oil prices into the red

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Pessimism pushes oil prices into the red

Reuters

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Oil prices fell on Friday, with continued pessimism about the Corona virus, as optimism about the recovery of fuel demand waned, in light of concerns about the irregularity in the global rollout of Covid-19 vaccines.

Brent crude fell 0.2 percent to $71.18 a barrel, by 05:04 GMT, after falling four cents on Thursday, after rising to its highest level since May 2019. Crude is heading for a weekly gain of more than two percent this week.

While US crude also fell 0.2 percent to $ 68.71, after falling two years in the previous session, but it is heading to record a weekly gain of about four percent.

And both contracts earned about five dollars each in the past two weeks, amid optimism that global demand for fuel is recovering from the height of the pandemic.

“We continue to view the recovery in oil demand largely as a result of vaccinations,” commodity analysts at JPMorgan Chase said in a note.

Analysts noted that “America and Europe are well ahead in their vaccination efforts,” but the slow pace of vaccination rollout activities in both developed and emerging Asian countries means that “there is no clear end in sight to social distancing restrictions in the region.”

Source: Reuters



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