Oil Prices Reviving from a Week of Decline Amid Rise in Buying Activity

Oil prices which were falling over the last week due to weakened demand amid fears of the Delta Variant, and a stronger dollar have revived on Monday with Brent Crude futures climbing 60 cents (0.9%) to USD 65.78 per barrel after reaching a low of USD 64.60 per barrel earlier in the past week. US West Texas Intermediate (WTI) Crude futures for October rose 53 cents (0.9%) to USD 62.67 a barrel. 

Last week, both the benchmarks marked their biggest week losses last week with the Brent sliding about 8% and WTI falling about 9% as the markets were hit by twin effects of the rising COVID cases and a stronger dollar. 

The price rise is expected to have been triggered by the boost in buying activity in Asia amid declining prices with the South Korean and Chinese refiners buying at least 5 million barrels of US Mars Crude Loading in September in order to take advantage of the falling prices. 

Buying activity will continue to be competitive in Asia with the prices declining in the US due to the fears of the Delta Variant. The Oil supply in Asia has also seen a rise since India has started selling Oil from its Strategic Oil Reserves. This might also have a downside effect on the prices and could support the ongoing rise in the buying sentiment in Asia

As per ChemAnalyst, “more adjustments are expected in the upcoming week, but the market sentiment will likely remain bearish with the growing concerns over slowing of the fuel demand worldwide.”