Oil prices plummet amidst China's COVID-19 curbs, strong U.S. dollar
Category: #business  By Mateen Dalal  Date: 2021-08-10
  • share
  • Twitter
  • Facebook
  • LinkedIn

Oil prices plummet amidst China's COVID-19 curbs, strong U.S. dollar

Oil prices dipped 2% on 9th August, recording a three-week low, while dragging out the previous week's hefty loss spree. This price decline was mainly driven by a stronger U.S. dollar and concerns that COVID-19 related restrictions across the Asian continent, particularly China, could further affect the recovering fuel demand.

The bearish outlook continued after a dire warning was issued by the United Nations on climate change as fires razed forests and homes in Greece, and several parts of Europe suffered deadly floods last month.

Brent Crude futures dropped by 2.4% by USD 1.66 and reached USD 69.04 a barrel, and U.S. West Texas Intermediate crude fell by USD 1.80, to stabilize at USD 66.48. Notably, these were the lowest closing prices for both indexes since 19th July.

Top Wall Street investment banks JPMorgan, Goldman Sachs, and Morgan Stanley slashed their growth estimates for China on Monday after an unexpected decline in export growth, and on concerns that the reemergence of COVID-19 infections could stifle economic activity.

In this context, China has reported approximately 125 new coronavirus cases on 9th August, a sharp rise from just 96 cases a day earlier, while infection rates in Thailand and Malaysia have been hitting daily records.

Meanwhile, a strengthening U.S. dollar, which saw a three-week high against a slew of other currencies, also weighed heavily on oil prices after a better-than-expected U.S. job report instigated speculations that the Federal Reserve could soon tighten the monetary policy.

It is worth noting here that a strong U.S. dollar results in oil becoming more expensive for countries transacting in other currencies.

As per market experts, the oil industry is now seeking direction from monthly data, namely the reports from the U.S. Energy Information Administration (EIA) due on 10th August, and International Energy Agency (IEA) and Organization of Petroleum Exporting Countries (OPEC) to be released on 12th August.

Source Credits –

https://www.reuters.com/business/energy/oil-slumps-china-travel-curbs-strong-us-dollar-2021-08-09/

About Author

Mateen Dalal    

Mateen Dalal

Despite working as a professional testing engineer, Mateen Dalal always held a liking for content creation. Following his passion, he now pens down articles for itresearchbrief.com and a couple of similar portals. Mateen is a qualified electronics and telecommunicat...

Read More>>

More News By Mateen Dalal

Flipkart seeking 4000 part-time staff through Flipkart Xtra marketplace
Flipkart seeking 4000 part-time staff through Flipkart Xtra marketplace
By Mateen Dalal

Flipkart is reportedly launching a separate marketplace model named Flipchart Xtra to provide flexib...

Greece tests drones for medicine transportation to remote locations
Greece tests drones for medicine transportation to remote locations
By Mateen Dalal

The drone traveled 0.3 miles to deliver medicines to an isolated area in Greece. The initiative i...

Lufthansa to pay off government bailout by raising USD 2.5 billion
Lufthansa to pay off government bailout by raising USD 2.5 billion
By Mateen Dalal

Major German airliner Deutsche Lufthansa AG is expected to raise USD 2.5 billion by issuing new shar...