Oil prices are falling on Friday after a steady rise following the results of the previous session. The quotations were supported by expectations of limited supply amid a recovery in demand, Interfax reports.
The price of Brent September futures by 7:51 am Kyiv time on Friday amounted to $73.55 per barrel, which is $0.24 (0.33%) below the price at the close of the previous session on the London stock exchange ICE Futures. As a result of trading on Thursday, these contracts rose by $1.56 (2.16%) up to $ 73.79 per barrel.
The price of WTI September futures by this time amounted to $71.68 per barrel, which is $ 0.23 (0.32%) below the final value of the previous session on the New York Mercantile Exchange (NYMEX). The day before, the price of these contracts increased by $1.61 (2.3%) to $71.91 per barrel.
At the same time, prices for both brands demonstrate growth in a week, Trading Economics writes.
At the same time, the market is under pressure because of continuing concerns about the rate at which a new strain of coronavirus is spreading in the world and its consequences for the global economy. Experts fear the introduction of new quarantine measures that will limit the oil demand.
Over time, “the effects of each new round of lockdowns become weaker, but continue to serve as a reminder to traders that the road to recovery remains a thorny one,” Colin Cieszynski, Director of Market Strategy at SIA Wealth Management, said, MarketWatch reports.
Futures fell sharply at the beginning of the week but won back losses amid investor expectations that overall demand will remain strong amid a decrease in raw material inventories and an increase in vaccination rates.