Oil’s Comeback Is Lifting Commodity Prices

oil price rise - rig

After taking a beating over the past few weeks, oil price rise surging on rising demand optimism. This is a major production outage in Mexico. Also the first full U.S. regulatory approval of a COVID-19 vaccine.

October crude and Brent were up 3% to $67.47/bbl and $70.83/bbl, respectively. A day after a 5% surge by both benchmarks snapped a seven-day losing streak. This is after China claimed to have brought its coronavirus cases down to zero and opened up the Ningbo port. This is one of the busiest in the world, after a two-week shutdown.

About two weeks ago, China—once the epicenter of the virus—took an uncompromising approach by imposing widespread travel restrictions. This inclueds new lockdowns. Authorities in Beijing curtailed public transport and taxi services in 144 of the worst-hit areas nationwide, including train service and subway usage in Beijing.

That seemed like overkill, with less than 1,000 cases of the delta virus reported nationwide and a good 61% of the population already fully vaccinated. However, Beijing opted to employ its tried-and-tested method of targeted lockdown that has been successful in stopping no less than 30 Covid-19 flare-ups in the past. The capital city of Beijing implemented a two-week quarantine for visitors from high-risk areas, halted the use of community spaces for entertainment, and also limited the number of visitors allowed at parks and scenic areas.

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Source: Oil Price

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