Oil is Rising, But it is on Track to Incur a Weekly Loss of 5%

Oil prices stabilized today, moving away from 3-month lows, but still on track for a weekly loss of more than five percent as new lockdowns in countries facing increasing cases of the mutated delta strain of coronavirus dampened the outlook for fuel demand.

Investors’ aversion to risks in general also took a toll on oil, with the dollar rising to a 9-month high thanks to indications that the US Federal Reserve is considering scaling back its stimulus program this year.

Brent crude futures rose 24 cents, or 0.4 percent, to $ 66.69 a barrel ahead of the opening of European markets, after falling 2.6 percent on Thursday to their lowest closing level since May.

US West Texas Intermediate crude futures for September delivery, due to expire on Friday, rose 38 cents, or 0.6 percent, to $64.07 a barrel, after falling 2.7 percent yesterday.

The most active October contract rose 26 cents to $63.76 a barrel.

China imposed new restrictions in light of its Coronavirus policy, which requires not to allow any cases, affecting global shipping and supply chains, and the United States and China imposed mutual restrictions on flight capacity.

Meanwhile, outbreaks of the delta strain in Australia and New Zealand have led to strict public isolation measures.