Crude edges higher as supply outlooks tighten,despite delta variant spread

摘要

Crude oil futures settled higher June 24 as the market eyed increasingly bullish supply and demand outlooks,despite the rapidly spreading coronavirus delta variant.NYMEX August WTI settled 22 cents higher at $73.30/b,and ICE August Brent climbed 37 cents to $75.56/b.The upcoming meeting of OPEC and its allies slated for July 1 could provide the next direction for a market in search of fresh drivers,analysts said.The OPEC+ group is expected to discuss production quotas for August and possibly beyond,and market forecasters are warning of a supply crunch this summer if OPEC and its allies do not agree to pump more crude imminently."The world is hungry for more oil,but we expect OPEC+ to maintain a cautious approach that may only satisfy a portion of the expected deficits this summer,"TD Securities Analysts said in a note."This approach comes amid a spreading delta variant,which is still impacting mobility in certain geographies,while Washington's negotiations with Iran could also quench a substantial portion of expected deficits."NYMEX July RBOB moved 1.40 cents higher to settle at $2.2809/gal,and July ULSD climbed 29 points to $2.1623/gal.