👀 Ones to watch: Undervalued stocks to buy before they report Q3 earningsSee Undervalued Stocks

Oil Steadies After Surging Above $65 With Broader Market Rally

Published 24-08-2021, 07:36 am
© Reuters.
GS
-
LCO
-

(Bloomberg) -- Oil steadied on Tuesday after jumping more than 5% amid a global rebound in equities and commodities following the worst losing streak for crude since October 2019.

Futures in New York traded near $65 a barrel after advancing on Monday for the first time in eight sessions. The fast-spreading delta variant of the virus is continuing to cloud the economic outlook, but there are a few positive signs for demand. China has brought local cases down to zero, while Southeast Asia’s biggest economy -- Indonesia -- has lifted some restrictions.

See also: Singapore’s Offshore Oil Glut Swells With Iran, Venezuela Supply

The Covid-19 resurgence has interrupted oil’s rally and may prompt OPEC+ to reassess its plans to return additional barrels to the market each month until all of its halted output halted is revived. Goldman Sachs Group Inc (NYSE:GS)., however, reiterated that the impact from delta would be transient.

The futures curve has weakened amid the flare-up. The prompt timespread for Brent was 40 cents in backwardation -- a bullish structure where near-dated contracts are more expensive than later-dated ones. That compares with 92 cents at the end of July.

Chinese airlines plan to operate the fewest flights in August since February, according to data from Cirium, following the latest virus outbreak. In Malaysia, infections are rising and threatening to aggravate shortages of semiconductors and other components that have hammered automakers for months.

©2021 Bloomberg L.P.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.