Oil prices climb despite worsening Covid-19 outbreak in China

The Covid-19 caseload is growing in Shanghai with 26,000 new cases per day, as reported Sunday.
Photo: INA FASSBENDER/AFP / AFP
Photo: INA FASSBENDER/AFP / AFP
BY MARKETWIRE, TRANSLATED BY CHRISTOFFER ØSTERGAARD

The commodities market has had a mixed start to the week where stockpiles for metals have gone down, China’s economy is hit by its Covid-19 measures, and West Texas Intermediate crude stays below USD 100 per barrel, writes Bloomberg News.

A barrel of European reference crude Brent costs USD 100.32 Monday morning against USD 100.03 Friday afternoon. Meanwhile, WTI crude trades at USD 95.88 against USD 95.72 Friday afternoon.

The number of cases in the Chinese city of Shanghai is steadily rising with reports Sunday of a record number of cases exceeding 26,000 in total per day.

This has led several oil analysts to lower their demand prognoses.

”There seems to be no end in sight for the current lockdowns, and clearly the longer this goes on, the more of a demand hit we will see,” says Warren Pattersen, head of commodities strategy at Singapore-based ING Group, to Bloomberg News.

Meanwhile, reports coming out of the Organization of Petroleum Exporting Countries and the International Energy Agency later this week will provide clues as to which direction the oil prices are heading, writes Bloomberg News.

The London Metal Exchange saw a collapse across global metal stockpiles, which fell to the lowest level since 1997.

Elsewhere in the commodities market, wheat prices rose to the highest level in two weeks as a result of Russia’s invasion of Ukraine and the war’s continued effect on trade flows.

EU ratifies new sanctions package against Russia

Oil prices dip on planned release of strategic reserves

UN report pushes climate targets out of reach

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