WTI crude oil witnessed mixed trade last week, but ended with a decline of almost 3 per cent. Oil has been juggling between tightness in markets and demand concerns amid a spike in coronavirus cases leading to fresh lockdowns. Despite the losses, WTI crude largely held the $58-62/bbl range amid mixed factors.
Weighing on crude price were a rise in Covid-19 cases, which forced countries to impose stricter restrictions, mixed economic data from major economies, the decision by OPEC countries and their allies to raise supply gradually in coming months, the prospect of higher supply from Iran amid efforts to ease US-Iran tensions, and a rise in US crude oil rig count to April 2020 highs.
However, supporting the price was a second weekly decline in US crude oil stocks, US Energy Information Administration (EIA)’s forecast of deeper deficit in 2021 owing to demand growth, the IMF’s upbeat global growth outlook, general optimism about the US economy amid stimulus measures, and weakness in the US dollar.