• Sign up for the Daily Digest E-mail
  • Facebook
  • X
  • LinkedIn

BOE Report

Sign up
  • Home
  • StackDX Intel
  • Headlines
    • Latest Headlines
    • Featured Companies
    • Columns
    • Discussions
  • Well Activity
    • Well Licences
    • Well Activity Map
  • Property Listings
  • Land Sales
  • M&A Activity
    • M&A Database
    • AER Transfers
  • Markets
  • Rig Counts/Data
    • CAOEC Rig Count
    • Baker Hughes Rig Count
    • USA Rig Count
    • Data
      • Canada Oil Market Data
      • Canada NG Market Data
      • USA Market Data
      • Data Downloads
  • Jobs

Oil drops on concerns European COVID-19 issues to crimp demand

March 22, 20217:52 PM Reuters0 Comments

Sask oil pumpjack

Oil prices fell 1% on Tuesday on concerns that new pandemic curbs and slow vaccine rollouts in Europe will slow a recovery in fuel demand and as producers cut prices, indicating ample oil supply.

U.S. West Texas Intermediate (WTI) crude futures for May delivery fell $3.19, or 5.2%, to $58.05 a barrel.

CL1! chart by TradingView

The April contract expired on Monday at $61.55, up 13 cents from Friday, after plunging more than 6% last week. Brent crude futures for May dropped by $3.15, or 4.95% to $61.08, erasing a 9 cent gain in the previous session.

“(The declines) are to do with vaccine rollout issues and lockdowns in Europe,” said Lachlan Shaw, National Australia Bank’s head of commodity research.

Germany, Europe’s biggest oil consumer, is expected to extend restrictions on shopping and travel into April to contain a third wave of COVID-19 infections, which has led economists to cut their growth forecasts.

Extended lockdowns are being driven by the threat of a third wave of infections, with a new variant of the virus on the continent.

“This is heightening fears that the pessimistic forecasts from both the International Energy Agency and the EIA (Energy Information Administration) recently could eventuate,” ANZ Research said in a note.

The Paris-based IEA last week cut its forecast for crude demand in 2021 by 2.5 million barrels per day, while the EIA forecast global oil supply would surpass demand in the second half of 2021.

Physical crude markets are indicating that demand is lower much more than the futures market.

Nigeria, Africa’s biggest oil producer, on Monday cut its official selling prices for April-loading cargoes, suggesting that suppliers are trying to encourage sales. Angola, the continent’s second-biggest producer and a key supplier to China, still has some April cargoes that remain unsold, indicating a lack of interest from Chinese refiners.

“Physical prices have been weaker than futures have been suggesting for several weeks now,” Shaw said.

U.S. crude stockpile data from the American Petroleum Institute will be released later on Tuesday. Analysts estimate U.S. crude inventories fell by about 900,000 barrels in the week to March 19 while refinery utilisation rose by 3.2 percentage points, according to a Reuters poll.

Inventory data from the EIA, considered more definitive, will be released on Wednesday. 29dk2902l

Follow BOE Report
  • Facebook
  • X
  • LinkedIn

Sign up for the BOE Report Daily Digest E-mail

Successfully subscribed

Latest Headlines
  • New oil and gas jobs from BOE Report Jobs
  • Hemisphere Energy Announces Normal Course Issuer Bid Renewal
  • Trump says US to impose 50% tariff on copper imports, copper futures jump
  • Canada maps out widening strait to LNG riches
  • Discount on Western Canada Select narrows

Return to Home
Alberta GasMonthly Avg.
CAD/GJ
Market Data by TradingView

    Report Error







    Note: The page you are currently on will be sent with your report. If this report is about a different page, please specify.

    About
    • About BOEReport.com
    • In the News
    • Terms of Use
    • Privacy Policy
    • Editorial Policy
    Resources
    • Widgets
    • Notifications
    • Daily Digest E-mail
    Get In Touch
    • Advertise
    • Post a Job
    • Contact
    • Report Error
    BOE Network
    © 2025 Stack Technologies Ltd.