Market

Oil rises, but gains capped by demand concerns as India reels from COVID-19 By Reuters

© Reuters. FILE PHOTO: A gas pump is seen hanging from the ceiling at a petrol station in Seoul

TOKYO (Reuters) – Oil prices bounced back early on Tuesday from drops in the previous session, but gains were seen likely capped by growing concern about fuel demand in India, the world’s third-biggest crude importer now slammed by spiralling new coronavirus cases.

was up 26 cents, or 0.4%, at $65.91 a barrel by 0141 GMT, after dropping 0.7% on Monday. U.S. oil gained 23 cents, or 0.4%, to $62.14, having declined by the same amount the previous session.

“There are clearly some concerns around the demand outlook, particularly over how the Covid-19 situation is developing in India,” ING Economics analysts said in a note.

The Indian government ordered the country’s military to help respond to the surging coronavirus infections, with countries including Britain, Germany and the United States promising aid as the emergency overwhelms hospitals.

India’s woes comes as the Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia, a group known as OPEC+, are set to discuss policy on production at a meeting this week.

The OPEC+ joint technical committee has maintained a forecast for growth in oil demand growth this year, but has concerns about the surging COVID-19 cases in India and elsewhere, three sources from the producer group told Reuters.

“The big question is whether OPEC+ feels that the situation is bad enough to alter its planned production easing from 1 May,” said ING. “We still expect that the group will announce no changes to its plan when they meet tomorrow.”

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.



Most Related Links :
usnewsmail Governmental News Finance News

Source link

Back to top button