Oil prices are expected to rise despite the increasingly severe epidemic in India

According to a Reuters report on May 7th, although India’s new crown pneumonia crisis has restricted oil prices, under the optimistic backdrop of global economic recovery, oil prices stabilized on Friday and are expected to rise this week.

At 08:13 GMT, the price of Brent crude oil futures rose 1 cent to US$68.

The relaxation of travel restrictions in the United States and Europe, the restoration of factory operations, and the inoculation of the new crown pneumonia vaccine will boost fuel demand recovery.

In the United States, the world's largest oil consumer, the number of people applying for unemployment benefits has fallen, indicating that as the economy recovers, the labor market has entered a new phase of recovery.

However, as India’s rapid increase in new crown pneumonia cases has reduced fuel consumption in the world’s third-largest oil importer and consumer, the recovery in oil demand has been uneven.

Stephen Brennock of PVM, an oil brokerage firm, said: "Brent crude oil prices almost exceeded $70 a barrel this week, but ultimately failed to achieve a breakthrough because demand uncertainty dragged down prices.

In the long run, with the relaxation of lockdown measures and the release of pent-up demand during the summer driving season, demand is expected to pick up.

Wang Jiajing excerpted and translated from Reuters

The original text is as follows:

　　Oil prices set for weekly gain despite India virus surge

　　Oil prices steadied on Friday and were set for a weekly gain against the backdrop of optimism over a global economic recovery, though the COVID-19 crisis in India capped prices.

　　Brent crude futures were up 1 cent at $68.

　　Both Brent and WTI are on track for second consecutive weekly gains as easing restrictions on movement in the United States and Europe, recovering factory operations and coronavirus vaccinations pave the way for a revival in fuel demand.

　　However, crude imports by the world's biggest buyer fell 0.

　　In the United States, the world's largest oil consumer, jobless claims have dropped, signalling the labour market recovery has entered a new phase as the economy recovers.

　　The recovery in oil demand, however, has been uneven as surging COVID-19 cases in India reduce fuel consumption in the world's third-largest oil importer and consumer.

　　"Brent came within a whisker of breaking past $70 a barrel this week but failed at the final hurdle as demand uncertainty dragged on prices," said Stephen Brennock at oil brokerage PVM.

　　"Gasoline demand in the US and parts of Europe is faring relatively well," FGE said.

　　"Further out, we could see demand pick up as lockdowns are eased and pent-up demand is released during the summer driving season.