Oil prices vary amid COVID uncertainty in Asia

Global oil prices traded flat on April 9 morning amid uncertainty in demand caused by the coronavirus situation in the world, in particular in Asia, according to trading data, Report informs referring to Prime agency.

As of 8:46 (GMT+4), the price of June futures for North Sea Brent crude oil blend decreased by 0.11 percent to $63.13, while May futures for WTI oil rose by 0.12 percent to $59.67 per barrel.

The rise in the incidence of coronavirus in Asia raises concerns of investors about the prospects for the development of the region’s economy and the recovery in oil demand. The situation in India, one of the largest importers of crude, is of particular concern, where nearly 13 million cases of COVID-19 have so far been reported.

At the same time, a strong decline in oil prices is hampered by the general market optimism caused by expectations of a recovery in the global economy after the pandemic. These positive dynamics are facilitated by macroeconomic data, which indicate a gradual growth in the US and European economies.

“The signals are still very mixed,” said Daniel Hynes, a senior commodities strategist at Australia and New Zealand Banking Group Ltd. “Rising infections and renewed lockdowns are keeping the market on its toes. However, the curve is in backwardation, premiums are rising, and inventories falling.”

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