Global crude oil prices dipped approximately 2% as demand concerns triggered by the third wave of the Covid-19 pandemic in Europe.

Concerns over demand recovery outweighed the fears of oil supply disruptions that emerged after a container ship blocked the key Suez Canal trade route.

Brent crude futures slipped by $1.14, or 1.8%, to reach $63.27 a barrel while the US West Texas Intermediate (WTI) crude futures reduced by $1.27, or 2.1%, to $59.91 a barrel, reported Reuters.

The grounded container ship had potentially blocked ten oil tankers in the Suez Canal, sharply reversing the drop in the oil price, according to the news agency.

The market was supported by data showing improved US gasoline demand and refinery run rates.

Commonwealth Bank commodities analyst Vivek Dhar was cited by the news agency as saying: “As much as those (Suez blockage and US demand) factors were there, it doesn’t really erase the demand concerns questions that were asked earlier this week.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

“And while the focus was on Europe, we also have rising Covid-19 cases in places like India and Brazil, developing economies which are really critical to the story for sustainable oil demand growth.”

Meanwhile, India said it found a new ‘double mutant’ variant of the coronavirus. The country reported its highest tally of new Covid-19 infections and deaths in one day, which could further dent the demand outlook.

Four OPEC+ sources told Reuters that the Organization of the Petroleum Exporting Countries and allies (OPEC+) are expected to extend current supply curbs into May considering persistent fuel demand concerns and dipping prices, at a meeting scheduled on 1 April.