Meanwhile, Brazil defies global trend by planning to pump all-out: File Image/Pixabay
With media hype over Covid variant cases climbing in some parts of the world reaching fever pitch, crude prices on Monday suffered a dip, albeit slightly better than the 1 percent drop incurred shortly after the beginning of the session.
Vanda Insights said in a note, "With daily new Covid cases in the U.S. continuing to rise, oil demand uncertainty was the main driver of market sentiment."
Peter McNally, global head of industrials, materials and energy at Third Bridge, remarked, "We've seen demand, excluding jet fuel, come back in the developed world in a really strong way, so that's a known; the impact on the the developing world's been more unknown."
Roberto Monteiro, chief executive officer, Petro Rio SA
The action is here
Looking ahead this week to possible influences on oil prices, investors are awaiting earnings reports from major oil companies such as Exxon Mobil Corp., following U.S. shale producers suggesting last week that they would slow production growth and maintain discipline.
Morgan Stanley said in a research note, "Europe's integrated oil sector already enjoyed surprisingly strong earnings in 1Q, but 2Q is set to show further improvement as commodity prices took another step up."
Rene Santos, manager for North America supply at S&P Global Platts Analytics, added that second-quarter earnings from U.S.-based energy companies will be "significantly higher" when compared to the same period in 2020.
Meanwhile, more evidence came on Monday that while oil may be regarded as a sunset industry in the west, it remains king to emerging economies: Brazil is reportedly set to add more crude production through 2026 than any other country in an attempt to double crude output by 2030 to become the world's fifth-largest exporter.
Roberto Monteiro, chief executive officer of Petro Rio SA, told media, "All the major companies are getting ready to drill; the action is here" - a reference to Total, Equinor ASA, and Shell.