https://www.thenationalnews.com/business/energy/2021/08/14/oil-prices-weaken-after-china-port-closure-as-us-urges-opec-to-increase-supply/
Oil ended the week nearly flat as prices fell amid rising cases of the Covid-19 Delta variant and the closure of one of China's busiest ports as the US called for Opec to increase supply.
Brent, the international benchmark, and West Texas Intermediate, the main US gauge, rose marginally by around 0.2 per cent each for the week.
On Friday, Brent settled 1.01 per cent lower at $70.59 per barrel on Friday, while WTI fell 0.94 per cent to close at $68.44 per barrel.
Growing concerns over the potential of Delta-variant Covid-19 cases curbing global demand for crude also underpinned the weak market sentiment.
The world's largest crude buyer, China, closed one of its busiest terminals, Meishan, at the Ningbo-Zhoushan port after one positive Covid case. Ningbo-Zhoushan is the world's third-busiest container port. China, where the coronavirus was first detected, has a zero Covid-19 tolerance policy, shutting down major residential and commercial centres to contain outbreaks when cases are detected.
“News of the port closure has been a drag on oil prices, with crude turning south yesterday just as it was heading for the third day of gains,” said Craig Erlam, senior market analyst at Oanda Europe.
“But the prospect of further strict shutdowns in China at the slightest hint of a breakout will have implications for growth in the world's second-largest economy and largest importer in the near term. The outbreak in China, irrespective of how small the numbers currently appear, is a key catalyst behind crude prices tumbling from their highs again,” he added.