Oil Falls Due to Rise of COVID-19 in India and Japan, Fuel Demand Concerns Continue By Investing.com

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By Gina Lee Investing.com – Oil fell Monday morning in Asia due to an anticipated decline in oil demand, as the number of COVID-19 cases continues to rise in India and Japan. It fell 0.31% to $ 65.22 at 11:02 p.m. ET (3:02 a.m. GMT), and carried over to the July 2021 contract on April 25. it was down 0.19% to $ 62.02. However, Brent and WTI futures remained above the $ 60 mark. “Market sentiment was affected by concerns that the increasing number of COVID-19 cases in some countries, especially India, It will reduce fuel demand, “Kazuhiko Saito, chief analyst at commodities brokerage Fujitomi Co., the world’s third-largest oil importer, told Reuters. It exceeded 16.9 million as of April 26, according to data from the Johns Hopkins University. Japan, one place behind India on the scale of importers, declared a state of emergency in Tokyo, Osaka and two other prefectures as of Sunday. The country aims to curb the spread of the virus ahead of the Tokyo Olympics, which will open in July 2021. Fujitomi’s Saito also noted that investors are moving funds from oil markets to grain markets recently “already that volatility has been much higher in prices of corn and other grains. ” Chicago corn, wheat and soybeans rose to multi-year highs in the past week as concerns about cold weather damage to crops throughout the U.S. grain belt supported prices. Investors are also increasingly expecting that more agricultural products will be sold for biofuels. On the supply front, the Organization of the Petroleum Exporting Countries and its allies (OPEC +) will hold a technical committee meeting later in the day when major changes in current policy are unlikely, according to the vice premier. Russian minister Alexander Novak during the previous week. In the US, energy companies reduced the number of oil rigs in operation for the first time since March 2021, as rigs fell by one to 438 during the previous one. s week, according to US energy services firm Baker Hughes Co.

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