Oil offsets its losses

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The new trading week, which is marked in the calendar as the 17th one of 2021, brought traders and especially investors a positive change, when the price of oil on the world commodity market rose. On Monday, 26 April 2021 the price of oil offset its previous losses, as the Organization of the Petroleum Exporting Countries (OPEC) indicated that the current increase in Covid-19 cases in India could significantly affect oil demand with India being the third largest importer of oil in the world.

The price of West Texas Intermediate (WTI) light crude oil on the world commodity market initially hovered – on Monday, 26 April – around US$ 60.66 per barrel, but during the day its price rose to US$ 61.91 per barrel. This bullish trend continued the following day and during the European Tuesday morning on April 27 at 6:12 am CET it traded on the New York Mercantile Exchange (NYMEX) commodity market at US$ 62.19 per barrel with the current daily increase of +0.45% of its price. According to the technical analysis data, since the beginning of this year the price of WTI oil has increased by +28.24% and in year-over-year comparison it increased by +96.4% in the last 52 weeks.

WTI’s European counterpart, North Sea Brent’s price has also changed along with WTI, and on April 26 it increased from US$ 64.57 per barrel to US$ 65.65 per barrel at the end on this business day. On 27 April at a 6:19 am CET North Sea Brent crude oil traded on the Intercontinental Exchange Europe (ICE) commodity market at US$ 65.92 per barrel, with a daily gain of +0.41%. Since the beginning of this year the price of Brent North Sea crude oil has risen by US$ 27.82 per barrel, and in an annual comparison it has risen by +88.1% in the last 52 weeks. According to analysts these data indicate that the increase in the price of WTI is slightly more dynamic.

The OPEC+ Joint Technical Committee (JTC) has maintained its forecast for growth in global oil demand this year, but is concerned regarding the rise in COVID-19 cases in India and elsewhere, three sources from the producer group told Reuters. This week OPEC and its allies, led by Russia, a group known as OPEC+, will continue to discuss exit policy. “The market is on guard, coming back from India demand fears on reports that the OPEC technical committee acknowledged potential demand threats from the situation in India,” said Phil Flynn, senior analyst at Price Futures Group in Chicago. FGE expects gasoline demand in India to drop by 100,000 barrels per day (bpd) in April and by more than 170,000 bpd in May. Total gasoline sales in India came to nearly 747,000 bpd in March. According to FGE, demand for diesel – which accounts for about 40% of India’s refined fuel sales – is at about 1.75 million bpd, could fall by 220,000 bpd in April and another 400,000 bpd in May.

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