Oil Slips on Europe Demand Concern

Oil Slips on Europe Demand Concern
Oil Slips on Europe Demand Concern

Oil slipped for a fourth day on Wednesday as concerns about weaker demand in Europe outweighed an industry report that showed US crude stockpiles unexpectedly fell last week.
Several European countries have paused the use of AstraZeneca’s Covid-19 vaccine due to worries over possible side effects. Germany is seeing rising coronavirus cases, while Italy is imposing a nationwide Easter lockdown, CNBC reported.
Brent crude fell 66 cents, or 1%, to $67.73 a barrel. US West Texas Intermediate crude dropped 42 cents, or 0.7%, to $64.38.
“The suspension will not do the bloc’s economic and fuel recovery any favors,” said Stephen Brennock of oil broker PVM. “The hope now is that Europe can get its sluggish vaccine rollout back on track.”
Oil also fell after the release of the latest reports from the International Energy Agency, which said a super cycle was unlikely, demand won’t return to pre-pandemic levels until 2023 and could peak earlier than previously thought.
“IEA’s report has triggered an action among oil traders,” said Naeem Aslam of Avatrade. “We have seen some selling.”

Add new comment

Read our comment policy before posting your viewpoints