Oil price could not take in more pressure amid the growing number of infections in its top Asian exporters. The countries in question are mainly India and Japan.
In the latest update from the world’s third-biggest crude importer, India, the country’s B1617 Covid mutation is looking more transmittable and deadly than its predecessor.
On Monday morning, reported daily cases topped 350,000 with a high mortality rate above 2,000.
Hospital beds are now running out, with citizens receiving oxygen support on the street. Mass cremations on vacant lots are also spotted, hinting that the situation is running out of control.
Exporters are worry that should the situation persist, then the Organization of Petroleum Exporting Countries must also reevaluate their production strategy for May.
In the commodity charts, Brent crude futures slashed $0.38, sending the European benchmark to trade at $65.73 per barrel.
It managed to end last week with another beautiful performance, supported by the bettering global economic outlook among top importers.
The West Texas Intermediate futures contract followed suit and discounted $0.31 for the day, settling at $61.83 per barrel.
The American benchmark ended Friday’s session with a 1.2% hike. Both contracts have added a weekly rise of 1% last week.
As the situation turns to worse, the United States is looking to give some support to its South Asian counterpart.
In his latest statement, President Joe Biden pledged the provision of medical supplies to India to support both the wellness of medical practitioners and patients.
On top of this, the US also plans to send funds to expedite the country’s inoculation process to aid billions of people on the brink.
Crude Inventory and OPEC Monitored
With nothing but crude inventory to watch this week, traders are looking forward to the updates from the world’s leading industry groups.
The US Energy Information Administration and the American Petroleum Institute are scheduled to release reported later in the week.
Amid India’s dilemma, Japan is also balancing with many risks. The world’s fourth-largest crude importer re-adopted the state of emergency, briefly a month after its predecessor was lifted.
The incumbent administration placed capital city Tokyo and nearby prefectures under another curb as daily infections continue to rise.
A market strategist warned of the effects of the transpiring events vis-à-vis OPEC’s decision to increase output this coming May.
In an estimate, Brent crude is looking to fall to $60.00 per barrel should supply outweighs demand in the coming weeks.
Meanwhile, WTI is likely to fall below the psychological level, given the outside pressure.