Commodities Week Ahead: Oil Bulls Bank On US Demand Vs. COVID Fears – Investing.com

Commodities Week Ahead: Oil Bulls Bank On US Demand Vs. COVID Fears – Investing.com

Against a backdrop of worsening global infections from COVID-19 variants, oil appears to have one thing to count on: the optimistic US story.Crude prices got off to a weak start in Asia on Monday on concerns that surging caseloads of coronavirus infections in India and other countries will lead to stronger mitigation measures and hit economic activity.

Yet, oil might see more volatility instead of a continued slide in prices, especially if there's a recurrence of last week's momentum-boosting drivers.Oil prices jumped more than 6% last week, even as Europe to India convulsed from new-strain, coronavirus case loads and US health authorities suspended use of Johnson & Johnson's (NYSE:) crisis-laden COVID-19 vaccine. Reason: US crude drawdowns that came in way above expectations, accompanied by roaring US economic data. dropped 5.899 million barrels for the week ended Apr. 9, compared with analysts' expectations for a draw of 2.889 million barrels, the US Energy Information Administration said. stockpiles, which include diesel and , dropped 2.083 million barrels in the week against expectations for a build of 971,000 barrels, the EIA data showed.And while inventories rose, the rise of 309,000 barrels was way below the expected draw of 786,000 barrels.A rash of US