Crude oil notches weekly gains despite pandemic catastrophe in India

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Crude oil notches weekly gains despite pandemic catastrophe in India

On Friday, both US and UK crude oil futures edged higher and notched a second straight week of percentage gains despite a worsening pandemic outbreak in India with hospitals running out of beds and medical oxygens, as a number of major G20 economies including the eurozone , China and the United States illustrating solid signs of an economic recovery with factory orders flying higher amid an increase in domestic demands, had offset the fiscal impacts of a growing holocaust in India alongside Japan, the world’s third- and fourth-largest crude oil importers respectively.

In point of fact, in the week’s solid gains in crude oil contracts were mostly catalysed by a flurry of upbeat fundamentals including a rise in eurozone composite PMI (Purchasing Managers’ Index) and an increase in German investors’ morale, while a 1.1 per cent rise in new orders for US-made core capital goods in March, had helped buoy up market optimisms further.

Aside from that, robust exports and imports in China last month as cited by the country’s customs department, came forth as a light at the end of tunnel underscoring experts' belief that a swift economic turnaround would still be possible for a raft of pandemic-battered economies, if health protocols could be maintained.

Nonetheless, while a record number of daily cases with death tolls rising above 4,000 per day had curbed out India’s crude oil demands, Japan, facing off the pandemic’s third wave, put in place a state of emergency and the country’s crude oil import was severely foundered last month, data revealed earlier last week.

Crude oil edged higher on hopes of global economic recovery

Citing statistics, in the day’s commodity market round off, UK crude futures’ prices rose 0.2 per cent to $68.28 per barrel, while US West Texas Intermediate crude oil futures had edged 0.3 per cent higher to $64.90.

On the week, both benchmarks had reported more than 1 per cent in gains. Meanwhile, addressing to an uneven oil demand across the globe, a senior market analyst at OANDA, Edward Moya said, “Oil prices might still have a positive second consecutive week, but it is nothing to get energy traders excited that oil will break away from its tightening trading range. Oil's short-term outlook remains very mixed”.