Oil withdraws from high levels amid tightening market
After hitting a four-week through, oil prices were seen stagnant during their early Tuesday trade in Asia. The subdued performance came as investors digested a rapidly increasing surge of buyers and sellers in U.S. crude markets.
Futures in New York were quoted $73 a barrel after a 2.8% increase on Monday. While there was a decline, the market remained bullish as prices approached their widest backwardation in seven years.
Global benchmark Brent was expected to surge around $100 per barrel in 2022 as travel demand slowly shrugs off coronavirus-driven constraints, the Bank of America said.
Oil prices hiked more than 50% this year, and the expansion was owed mainly to an impressive emergence of the United States, China, and Europe from the coronavirus slump. But surging cases in some parts of Asia indicated that the acceleration would be turbulent.