Oil settles mix amid fresh rise in COVID-19 cases in China, Europe

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Oil settles mix amid fresh rise in COVID-19 cases in China, Europe

Crude oil prices
Image source: © Batareykin | Megapixl.com

Highlights

  • Crude oil settled the mix on Monday.
  • The US dollar hit 16-month highs against a basket of currencies.
  • OPEC+ reduced its crude oil demand forecast by 330,000 for the fourth quarter.

Crude oil prices settled mixed on Monday on the back of strong dollar and rise in COVID-19 cases. January delivery Brent Crude oil futures last traded at US$82.15 per barrel up 0.07%, whereas January delivery WTI crude oil futures traded 0.13% down at US$79.65 per barrel as of 16 November 2021 at 11:57 AM AEDT.

The prices of crude oil were under pressure during the initial sessions of trade on expectations that Joe Biden's administration could increase the output from its strategic reserves to cool down the skyrocketing oil prices.

Rising US dollar

Additionally, the US dollar hit 16-month highs against a basket of currencies, weighing oil prices. A strong dollar makes oil more expensive for other currency holders.

Last week, various energy firms of the US added oil and natural gas rigs for the third consecutive week on the back of a 65% rise in the prices of US crude, so far this year.

Rising coronavirus cases

Rising coronavirus cases | Source: © Yakobchuk | Megapixl.com

Apart from this, rising cases of coronavirus in Europe and China may decrease the demand for crude oil in the coming months. China is concerned about rising Delta variant cases in the country.

The Organization of the Petroleum Exporting Countries (OPEC) group along with its allies, commonly known as OPEC+ reduced its crude oil demand forecast by 330,000 for the fourth quarter, relative to the last forecasted range as high energy prices retarded economic recovery from COVID-19.

Also Read: ASX 200 trades lower at open; Mesoblast, Nearmap lead fall

Bottom Line

Crude oil settled mix on Monday on rising US dollar and surging coronavirus cases in China and Europe.

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