The oil price looks optimistic. What are the reasons?
Oil starts the week on back foot on lingering oversupply concerns
On Monday, crude declined because ongoing worries over a global supply glut put pressure on market sentiment.
September delivery West Texas Intermediate crude futures lost 0.1%. The benchmark decreased to its lowest value in nearly two-and-a-half weeks being worth at $47.98 in the previous trading session.
Meanwhile, October delivery crude futures inched down 0.2% in London, hitting $52.00 a barrel.
On Friday, crude prices settled higher, still concluding the week with a loss.
The previous week WTI sank 1.5%, while Brent went down 0.6%, amid signs that OPEC members stepped up output in July notwithstanding the current pact to cut output.
As the International Energy Agency states, OPEC's compliance with the output cuts had dropped to 75% the previous month, which is the lowest outcome since the deal burst out in January.
On Friday, oilfield services company Baker Hughes reported that its weekly count of crude rigs operating in America ascended by three rigs to 768 the previous week.
The market optimism waned amid stricter restrictions to control rising coronavirus infections. S&P 500 and Nasdaq dropped from the all-time highs, while the USD jumped higher.
S&P 500 skyrocketed to the all-time high on optimism that Biden’s fiscal stimulus will support economic growth and boost corporate earnings.
PMI reports from the EU, the UK, and the USA will be released during the day!