Oil prices adjusted its path to achieve some gains after the decline yesterday and in trading this morning with the high incidence of Coronavirus in the United States and elsewhere, prompting some countries to resume partial closures that may harm the demand for fuel.
Brent crude rose 1.25% to 41.4 dollars a barrel, while US crude fell 1.33%, to record 38.98 dollars.
Brent is heading to achieve a monthly increase, which will be the third in a row in June, after global producers extended an unprecedented supply reduction of 9.7 million barrels per day until the end of July, while demand for oil improved after countries around the world eased comprehensive shutdown measures.
But the global cases of infection with the Corona virus exceeded ten million yesterday, Sunday, as India and Brazil suffered an outbreak exceeding ten thousand cases daily. New infections have appeared in countries such as China, New Zealand and Australia, prompting governments to re-impose restrictions.
In this context, Dr. Fahd bin Juma, a member of the Saudi Energy and Energy Council in the Shura Council, said in an interview with Al-Arabiya that oil prices began to fluctuate in the range of 40 to 41 dollars, due to 3 reasons: The first is the lack of declining American oil stocks.
Second, the increase in the number of HIV infections, which affects many economic activities.
Third, global demand has not moved as it should and to expected levels.
He pointed out that many producers are looking to extend the agreement to reduce production by 9.7 million barrels per day for an additional month.
"The second wave of infection has not left us," said Hui Lee, economist at Singapore's OBC.
He added that other factors that limit the current high oil prices include weak refining margins, high crude stocks and the resumption of US production.
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