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

2 min read | November 16, 2021 12:51 PM AEDT | By Arpit Verma

Oil settles mix amid fresh rise in COVID-19 cases in China, Europe — Image source: © Batareykin | Megapixl.com

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.

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Bottom Line

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

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