In context of a caustic turn of event in 26-member bloc’s vaccination drive with people’s confidence running low on AstraZeneca-Oxford pandemic vaccines, oil futures’ prices plummeted as much as 7 per cent last week as a third wave of infections across euro zone appeared to have dented hopes of a near term recovery in fuel demands, while a renewed lockdown measure on France and Italy alongside others had added to further strains.
Nonetheless, in a volatile trading session, both US and UK crude oil contracts rose 2 per cent on Friday, largely driven by investors’ optimism that the latest trend of a mass-scale sell-off of crude oil futures might have eased.
In factuality, in the week’s havoc-scale downfalls in crude oil futures’ prices were almost entirely catalyzed by an unprecedented slowdown of vaccination campaign over distribution issues alongside a steep lack of confidence among Europeans on AstraZeneca-Oxford vaccines, which in effect could polarize long-lasting fiscal repercussions, suggested analysts.
However, European health regulators were expecting to inoculate as many as 70 per cent of the bloc’s entire population before September this year, a move which has already been jeopardized as Europeans seemed to be awaiting US-borne pandemic vaccines likes of Moderna or Pfizer despite potential supply concerns.
Crude oil rises 2 per cent on Friday, but posts 7 per cent weekly decline
Citing statistics, On Friday’s commodity market wind down, UK crude settled 2 per cent higher at $64.53 per barrel, while US West Texas Intermediate crude oil futures gained 2.4 per cent to wrap up the day at $61.42 a barrel.
On the week, both oil contracts had nosedived just a notch shy of 7 per cent. Meanwhile, citing traders' optimism that the latest streak of sell-off wave in crude oil futures had been overdone, a senior analyst at Price Futures Group in Chicago, Phil Flynn said, “The sell-off is going to put into motion some things that could have slowed the rally.
OPEC is going to be more concerned about COVID, so this increases the odds that they will extend production cuts yet again, and with the sharp drop in the price of oil, it might reduce the incentive of the U.S. shale producers to get ahead of their skis. ”