Decrease in oil, due to concerns about Covid-19, before the OPEC + meeting

The price of oil has fallen as the revival of the coronavirus has raised demand concerns ahead of this week’s OPEC + meeting, at which the alliance could increase some halted production.

New York futures fell 0.2 percent after falling below $ 73 a barrel on Monday. The more infectious delta variant of the virus has led to a surge in cases in the UK and led to renewed restrictions and blockades in other regions. As the Crude oil market tightens, obstacles may emerge in talks at Thursday’s OPEC meeting to decide on more deliveries in August.

Oil is still up 10 percent this month as the Covid-19 pandemic rebound accelerated in key regions, including the United States and China, supporting rising fuel consumption and helping to drain supplies. Futures and swaps in leading pricing locations are in a bullish structure, although the spread is declining, which may be an early sign of some weakness.

Oil prices are falling due to growing concerns about the proliferation of the Covid-19 Delta option, but demand is growing, driven by countries including the United States, China and the Middle East.

OPEC +, meanwhile, expects the market to remain in deficit this year if it maintains stable production, according to data that technical experts will review on Tuesday before the coalition’s main meeting and could increase daily production by 500,000 to 1 million barrels. note by RBC Capital Markets.