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New restrictions to block the spread of the virus are expected to lower transport fuel demand in May.
Oil prices have fallen again in India as the second catastrophic wave of the coronavirus epidemic has halted the recovery in oil demand, offsetting the optimism of the strong rebound in demand in developed countries and China.
July’s gross Brent futures fell 15 cents, or 0.2 percent, to $ 66.61 a barrel at 02:44 GMT on Monday, and the West Texas West range was $ 63.48 in June, down 10 cents or 0.2 percent.
Statewide cuts aimed at losing India’s infections saw fuel sales in the world’s largest oil consumer fall in April, according to preliminary data.
“Overall fuel demand fell by about 7% compared to the previous level of COVID in April 2019,” said AK Singh Bharat Petroleum Corp, head of marketing at the refinery, adding that Indian demand in March was close to previous levels of COVID-19.
Analysts expect India’s transport fuel demand to fall sharply in May due to further cuts.
“As it appears as if Indian COVID-19 has not climbed to the top, we expect to see further decline in fuel demand during May,” ING analysts said in a statement.
On Sunday, India’s leading industrial organization push to reduce economic activity by the authorities, as the country’s health system has been flooded with rising infections.
With more than 300,000 cases reported daily for almost two weeks, India is struggling hard the second wave of a coronavirus that has overcome a weak and underfunded health care system.
Hospitals have been filled, medical oxygen supplies have been cut short and T-shirts and incinerators have been scrapped.
With 368,147 new cases in the last 24 hours, the total number of coronavirus infections in India is currently 19.93 million, with a total death toll of 218,959, according to data from the Ministry of Health.
Vaccine optimism
However, the development of global vaccine campaigns will increase demand for oil, especially during the peak season for travel in the third quarter, and analysts will push Brent price forecasts to rise for five-fifths in a row, the Reuters poll reported.
According to a survey of 49 participants, Brent will have an average of $ 64.17 a barrel in 2021, a consensus of $ 63.12 in the previous month and an average of $ 62.30 for this year’s benchmark.
On the supply side, the Organization of the Petroleum Exporting Countries (OPEC) dumped 25.17 million barrels a day in April, 100,000 more than in March as Iran and other producers increased production. OPEC production has been rising every month since June 2020 except in February.
Iran and the U.S. are negotiating to restore a nuclear deal, which could lead to the lifting of U.S. sanctions that would allow oil exports to increase.
Washington denied on Sunday, according to Iranian state television, that the enemies had reached an agreement to exchange prisoners in exchange for the release of $ 7.7 billion in oil profits frozen by sanctions on other U.S. countries.
In the U.S., energy companies added oil and natural gas platforms last week, and the correct number of platforms for the ninth month rose as price recovery pushed some drills back into the well, according to Baker Hughes.
However, U.S. crude oil production fell by less than a million barrels a day in February to its lowest level since October 2017, according to a government monthly report on Friday.
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