The Magazine for Asian Investors
Crude oil fell today for the first time this week after the recovery started at the beginning of the week.
Brent crude oil fell tonight Asia time (BKK GMT+7) by 0.24% to $70.83.
WTI crude oil fell 0.21% to $67.88.
Nevertheless, this week can be seen positively for crude oil. Brent crude oil started the week still at $64.85. WTI at $62.23.
The outlook for crude oil remains volatile.
Fears of a fourth COVID-19 wave and lockdown measures in individual countries are trying to pull the oil price down. In addition, many countries are still struggling with the rapidly spreading delta variant. Also, there were now voices claiming that the crude oil demand in the U.S. could have already reached its peak for this year.
Meanwhile, positive news came from China. Chinese authorities reported no new COVID-19 cases in the country. The rapidly recovering U.S. economy also gives hope for greater demand.
India also appears to be on the upswing again after the country was hit hard by the last COVID-19 wave. Fuel demand reportedly rose sharply in the world’s third-largest oil importer.
The markets are now looking eagerly to Jackson Hole. Tomorrow, Friday, Fed Chair Powell will announce the further direction of monetary policy. In particular, tapering and interest rate policy are hot topics. Exciting will also be how crude oil will act after the announcement of monetary policy.