Market news

22 November 2021

Oil is on the back foot in the opening sessions

  • WTI takes an early hit to start the week off on the downside.
  • Bears are pilling in on prospects of demand and supply-side risks.

WTI and Brent futures prices slumped around 3% on Friday. Today, the price of a barrel of spot oil in the Asian open is bleeding and down some 0.4% in terms of US West Texas Intermediate (WTI) crude. It slid from the $75.80 level to a low of $74.79 before recovering back to the current $70.40 mark 

Japan said on the weekend it was considering releasing oil reserves to help dampen prices and adding to the mix, there are demand concerns growing as COVID-19 cases surge in Europe. Firstly, Japanese Prime Minister Fumio Kishida said he was ready to help counter soaring oil prices following a request from the United States to release oil from its emergency stockpile.

Additionally, news that Austria is entering into lockdown has sent energy prices tumbling as the resurgent mobility and travel driven demand expectations are at risk.

 TD Securities have noted, however, that Germany has ruled out a national general lockdown which eases some of the concerns. ''Broader and long-lasting lockdowns as a measure to encourage better vaccination rates in Europe will be a key demand risk to keep an eye out for this winter season, but the selloffs could ultimately prove to be overdone. Indeed, energy markets have recently shown a tendency to overestimate the impact of Covid related demand disruptions, with the Asian delta outbreak the latest example.''

''Still, we reiterate our view that global energy markets remain extremely vulnerable to a demand shock this winter, and the rise in natural gas prices could see expectations for demand from gas-to-oil-and-fuel-oil switching rise once again, particularly if winter is cold.''

 

Market Focus

Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer.

Open Demo Account
I understand and accept the Privacy Policy and agree that my name and contact details can be used by TeleTrade to contact me about the information I have selected.
23 International Awards
Have a question?

We are ready to assist you in every step of your trading experience
by providing 24/5 multilingual customer support.

Follow us

Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.

© 2011-2022 Teletrade-DJ International Consulting Ltd

Teletrade-DJ International Consulting Ltd is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and is licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11.

The company operates in accordance with the Markets in Financial Instruments Directive (MiFID).

The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. Teletrade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.

TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.

Please read our full Terms of Use.

To maximise our visitors' browsing experience, TeleTrade uses cookies in our web services. By continuing to browse this site you agree to our use of cookies.

Teletrade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.

Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Choose your language/location