Oil falls on rising stockpiles and demand concerns.
Oil falling today as rising stockpiles in the United States jeopardize demand recovery after multiple countries including Germany and France halted COVID-19 vaccinations by AstraZeneca vaccine. This is adding to the concerns about a pace of vaccinations in the European Union, which may delay any economic recovery from the pandemic and therefore will lower the demand for the oil amid the already extended oil prices. Another factor weighing on oil is that stockpiles are rising in USA because of last month’s “big freeze” which halted refining operation. Crude inventories increased by 12.8 million barrels in the week to March 5, far above the analysts’ expectations for a rise of less than 1 million barrels.
Expect sellers on upward corrections.
Next support to watch – 66.30
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