Logo of Phnom Penh Post newspaper Phnom Penh Post - Excess supply turns crude oil price bearish amid new Delta variant concerns

Excess supply turns crude oil price bearish amid new Delta variant concerns

Content image - Phnom Penh Post
Analysis by Golden FX Link Capital business manager Nhim Kosol.

Excess supply turns crude oil price bearish amid new Delta variant concerns

Crude oil prices on Monday dipped to a low of $65.53 a barrel after trading at a record high of $76.93 earlier this month as the new Delta variant of the coronavirus threatens economic growth across the globe.

The price of crude oil is projected to be in bearish mood as the Organization of the Petroleum Exporting Countries and its allies (OPEC+) plan to increase production, and with the health crisis further hampering economic growth prospects.

The grouping on Sunday decided to adjust their overall production upward by 400,000 barrels per day on a monthly basis from the beginning of August.

Economies are likely to witness a low fuel consumption pattern after the emergence of the new coronavirus variant, thus reducing the demand for crude.

According to Worldometer, Indonesia had a higher weekly rate of infections than India and Brazil as of Tuesday. And many other countries around the world are at high risk of infection from the new variant of Covid-19, further slowing economic activities.

The Times of India said Asia’s largest oil importer India cut orders by 36 per cent from Saudi Arabia in May with its economy still recovering from the onslaught of the Delta variant.

The BBC reported that the Covid-19 infections in the UK exceeded 50,000 cases last Saturday, the highest number reported in the country for the first time since mid-January this year.

For technical analysis, crude oil is running in a bearish trend and being traded at $66.50 a barrel, lower than the 50-day moving average price of $69.85 a barrel on Tuesday morning.

For this week’s trading recommendation, investors can consider trading the price of crude oil in the range of $65 to $75 per barrel.

Content image - Phnom Penh Post

MOST VIEWED

  • PM imposes nationwide Covid restrictions, curfew over Delta scare

    Prime Minister Hun Sen late on July 28 instructed the municipal and provincial authorities nationwide to strictly enforce Covid-19 measures including curfew for two weeks from July 29 midnight through August 12 to stem the new coronavirus Delta variant. The instruction came shortly after he issued a directive

  • Two luxury hotels latest quarantine options for inbound travellers

    The Inter-Ministerial Committee to Combat Covid-19 has designated two luxury hotels as alternative quarantine options for travellers who wish to enter Cambodia through Phnom Penh International Airport – Sokha Phnom Penh Hotel & Residence and the Courtyard by Marriott Phnom Penh. In a notice detailing guidelines issued

  • Provinces on Thai borders put in lockdown amid Delta fears

    The government has decided to place several border provinces in lockdown for two weeks in a bid to prevent the new coronavirus Delta variant spreading further into community. According a directive signed by Prime Minister Hun Sen late on July 28, the provinces include Koh Kong,

  • Delta spreading in Kingdom

    Cambodia has so far detected more than 200 cases of the highly contagious coronavirus Delta variant, with 109 found on July 31 and August 1. The Ministry of Health has expressed deep concerns that the variant may have already reached communities and be spreading as some of the cases

  • US' Johnson & Johnson Covid-19 vaccines arrive

    The first batch of 455,000 doses of the Johnson & Johnson Covid-19 vaccine donated by the US touched down in Phnom Penh on the morning of July 30. They are part of the total 1,060,100 doses the US has pledged to provide to Cambodia through the World Health Organisation-led (

  • China denies Mekong hacking

    As the US and its allies joined hands last week to expose what they allege to be China’s Ministry of State Security’s malicious cyber activities around the world, the attention also turned to Cambodia with the US Department of Justice claiming that four