Oil approaches weekly gain amid investors’ confidence on demand resilience
Oil was set for its second weekly gain as investors wager the demand recovery will remain largely unaffected by the recent surge of COVID-19 cases.
Futures in New York inched lower on Friday, but have gained around 2% in the week, boosted by a broader market rally and the dollar’s weakness. The recovery of key economies has also helped in bolstering fuel consumption and emptied stockpiles built up during the pandemic.
However, the rise in the numbers of coronavirus cases associated with the coronavirus’ Delta variant has halted the black liquid’s rally, with prices remaining much the same for July after gaining in seven of the previous eight months. The novel strain has caused an increase in infections globally and prompted some countries to bring back tighter restrictions on mobility.
In other oil news, Brent’s prompt timespread was 95 cents in backwardation on Thursday, comparing with 88 cents at the start of the month.