Bent crude stayed above the $45 price level at London’s trading session on Monday.
The black hydrocarbon however pulled back some of its gains over ongoing concerns about global energy demand as the number of global COVID-19 caseloads keeps rising.
However, Brent crude losses were capped after OPEC+ vowed recently to keep oil production at the determined level of 7.7 million barrels per day.
Brent oil futures gained 0.60% to trade at $45.24 at the time this report was drafted.
Quick fact: Brent crude is the leading global benchmark for Atlantic basin crude oils.
The international benchmark is used to set the price of crude oil for about two-thirds of the world’s traded crude oil, including Nigeria’s crude (Bonny Light, Brass River, Qua Iboe, etc.).
Stephen Innes, Chief Global Market Strategist at AxiCorp gave insights on the prevailing macros at the oil market and what headlines crude oil traders are focused on. He said:
“WTI has opened up higher following the general risk mood after the US Food and Drug Administration (FDA) authorized the use of blood plasma from COVID-19 survivors to treat sick patients. There is some thought this could improve the therapeutics regime and help with survival rates.
“Oil prices struggled Friday on weaker than expected PMIs in Australia while Japan and Eurozone had tempered risk appetite, which looked set to finish the week on the front foot after Pfizer confirmed that its COVID-19 vaccine remains on track for a regulatory review in October.
“Not only has the uptick in COVID-19 case counts globally causing oil traders to look over their shoulder but it has the same effect on purchasing managers around the globe.”
Finally, Crude oil traders have been reducing extended long position risks, waiting for more precise signals on the OPEC catch up adjustment effects.
The energy market hasn’t turned bearish, yet it is just not as bullish.