Friday 15 January 2021

Oil drops as Chinese lockdowns, U.S. unemployment data drains rally | Reuters

Oil drops as Chinese lockdowns, U.S. unemployment data drains rally | Reuters

Oil prices fell 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 71 cents, or 1.2%, at $55.71 by 0758 GMT, after gaining 0.6% on Thursday. U.S. West Texas Intermediate crude was 46 cents, or 0.9%, lower at $53.11 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.

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