Oil is going down for their biggest weekly loss since March as the new Delta strain puts a strain on plans for future reopening the country for tourism purposes and the uncertainty of the OPEC+ deal increases doubt on how everything will pan out.
Futures in New York fell 0.6% going for $71 a barrel after closing in their lowest in a month on Thursday. COVID-19 Delta variant has raised the alarm across the globe with it spreading far and wide causing setbacks and dampens the demand for fuel. There’s probably good news on the horizon as the United Arab Emirates is trying to get a deal that would give it better terms and allow OPEC+ to deliver better output in the foreseeable future though none of it is black and white as of yet.
The strength of the dollar also chipped in this week, ensuring the price of raw materials in the U.S looks less attractive to investors. Oil has run into problems at the moment after what seemed like it was going on a different trajectory with the global economy pushing for recovery from the pandemic.
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Source : Bloomberg