Oil prices increased on Tuesday, August 3rd, 2021, in anticipation of a consistent decrease in U.S. oil Inventories, recovering some losses from the earlier session because of persistent concern over the rising number of Delta coronavirus variant cases across the country.
The global standard for oil prices, Brent, increased by 0.8% or 60 cents to settle at USD73.49 a barrel. U.S. West Texas Intermediate crude increased by 0.9% or 63 cents to settle at USD71.89 a barrel. Both markets fell more than 3% on Monday, August 2nd, 2021. Giovanni Staunovo, a UBS analyst, said that some market players were looking at Monday’s prices as a little overstated, considering that the whole industry is expected to witness another fall in oil inventory later this week.
A recent poll showed that U.S. crude and product Inventories were probably to decline last week, with both gasoline and distillates stockpiles projected to have dropped for the third week in a row. In spite of recent oscillations, oil prices are healthy and high, elevating earnings of fundamental oil firms. Pioneer Natural Resources Co (PXD.N), Continental Resources Inc (CLR.N), Diamondback Energy Inc (FANG.O), and BP (BP.L) accounted for brawny second-quarter earnings this week. Brent prices have increased more than 40% since the start of 2021.
However, the stress over the fast-spreading Delta variant in China and the United States, the two leading oil consumers, would affect the prices negatively.Additionally, the oil prices also increased amid pressures on expectations of Iranian crude’s return to the global markets. Ebrahim Raisi, Iran’s new president, said that his government would take stances to raise tyrannical permits imposed by the U.S. on its banking and energy sectors.