Oil slips as Chinese lockdowns, U.S. unemployment data temper gains
Economy 10:39 AM - 2021-01-15.
Oil prices were lower on Friday as concerns about Chinese cities in lockdown due to coronavirus outbreaks tempered a rally driven by strong import data from the world’s biggest crude importer and U.S. plans for a large stimulus package.
Brent was down 46 cents, or 0.8%, at $55.96 by 0544 GMT, after gaining 0.6% on Thursday. U.S. West Texas Intermediate crude was 29 cents, or 0.5%, lower at $53.28 a barrel, having risen more than 1% the previous session.
Brent is heading for the first weekly decline in three weeks, while U.S. crude is on track for a third weekly gain.
While producers are facing unparalleled challenges balancing supply and demand equations with calculus involving vaccine rollouts versus lockdowns, financial contracts have been boosted by strong equities and a weaker dollar, which makes oil cheaper, along with strong Chinese demand.
A nearly $2 trillion COVID-19 relief package in the U.S. unveiled by President-elect Joe Biden may increase oil demand from the world’s biggest crude consumer but worse than expected jobs data cast a shadow over the plans.
“With the Biden package offset by weak U.S. employment data, markets in Asia are disinclined to force prices,” said Jeffrey Halley, senior market analyst at OANDA.
“They will leave it to North America to decide if a retest of the recent highs is justified into the end of the week,” he said.
Crude imports into China were up 7.3% in 2020, with record arrivals in two out of four quarters as refineries increased runs and low prices prompted stockpiling, customs data showed on Thursday.
But China reported the highest number of daily COVID-19 cases in more than 10 months on Friday, capping a week that has resulted in more than 28 million people under lockdown and the country’s first death from the coronavirus in eight months.
“Oil market euphoria is unequivocally strong, but market indicators from Asia are mixed,” RBC Capital Markets said.
“China, the global engine of oil demand growth, is wrestling with fresh COVID outbreaks,” it said.
PUKmedia \ Reuters
More news
-
Iraqi President Emphasises Building Strong Relations with U.S.
12:46 PM - 2024-03-24 -
Barham Salih Joins Harvard as Senior Fellow
12:07 AM - 2024-03-24 -
Iraqi First Lady, Japanese Ambassador Discuss Humanitarian Cooperation
07:50 PM - 2024-03-23 -
PUK Strongly Condemns Moscow Terrorist Attack
02:12 PM - 2024-03-23
see more
President Bafel Arrives in Russia to meet Foreign Minister
10:02 PM - 2024-03-28
First Lady to Women Journalists: Women Should Support One Another
10:23 AM - 2024-03-28
Qubad Talabani: Our Primary Focus is Kurdistan Region's Budget & Salary Issues
08:45 PM - 2024-03-27
IHEC: Most of the Parties and Coalitions Have not Nominated Candidates
03:58 PM - 2024-03-26
Most read
-
President Bafel Arrives in Russia to meet Foreign Minister
News 10:02 PM - 2024-03-28 -
PUK President: PUK Upholds the Policy of Seeking Peaceful Solutions
News 12:14 AM - 2024-03-29 -
First Lady to Women Journalists: Women Should Support One Another
Kurdistan 10:23 AM - 2024-03-28