Mid-Week Review – August 11, 2021

Oil Prices Fall 1% As White House Presses OPEC+ to Boost Output

Oil futures retreated Wednesday after news reports said the Biden administration would press the Organization of the Petroleum Exporting Countries and its allies to further boost output. “We are engaging with relevant OPEC+ members on the importance of competitive markets in setting prices,” National Security Advisor Jake Sullivan said in a statement, according to reports. “Competitive energy markets will ensure reliable and stable energy supplies, and OPEC+ must do more to support the recovery.”

Oil Prices Slide As Much As 4.5% As the Delta Coronavirus Variant Outbreak Threatens the Global Recovery

Oil prices slumped on Monday as investors fretted that the continued rise in cases of Delta-variant coronavirus would knock the global economic recovery and reduce demand for energy. Brent crude oil was down 4.17% to $67.75 a barrel in European trading, falling to its lowest level in three weeks. WTI crude was 4.44% lower at $65.25 a barrel, having slipped as much as 4.5%. The Delta coronavirus variant is spreading rapidly around the world, driving up COVID case numbers in the US, Europe and even China.

July Consumer Prices Jump 5.4%, but Core Inflation Rises Less Than Expected

Prices that Americans pay for everyday goods and services continued their recent acceleration in July as pent-up demand for travel and restaurants kept inflation hot, but about where economists had expected. The Labor Department reported Wednesday that its consumer price index rose 5.4% in July from a year earlier, in line with June’s figure and matching the largest jump since August 2008. The government said CPI increased 0.5% on a month-over-month basis.

Oil Up More Than 2%, Boosted by Forecast for U.S. Fuel Demand Growth

Oil prices rose more than 2% on Tuesday, rebounding from recent losses on signs of rising fuel demand in the United States despite a surge in COVID-19 cases. Brent crude rose $1.59, or 2.3%, to settle at $70.63 a barrel and U.S. oil climbed $1.81, or 2.7%, to end the session at $68.29 a barrel. Both contracts dropped around 2.5% on Monday, and last week notched their biggest losses in months as infections surged in major global oil consumers.