COVID-19 restrictions in Asia affect oil sensitivity
Oil prices were mixed in a narrow range on Monday after the recovery of the colonial pipeline network eased supply concerns. Rising COVID-19 cases and new restrictions in Asia are putting pressure on sensitivity.
The gasoline shortage that plagued the US East Coast began to ease on Sunday after a cyberattack that disrupted the Colonial Pipeline's 5,500-mile (8,900 km) system.
Brent crude oil futures increased 3 cents to $ 68.74 as of 0511 GMT, and West Texas Intermediate (WTI) crude oil rose 8 cents, or 0.1%, to $ 65.45.
The two contracts managed to see a small increase last week, up about 2.5% on Friday, marking a third consecutive weekly increase.
A new wave of restrictions to curb the epidemic in Asia is cooling the market.
Investors are wary of concerns that the highly contagious coronavirus variant detected in India will spread to other countries.
There are fears that the country's annual budget may drop steadily as it fails to account for the paralyzing second wave of COVID-19 infections.
On Sunday, Japan, which is preparing to close most schools since this week, declared a state of emergency in three more provinces affected by the pandemic, while saying the new coronavirus variants affect children.
Disappointing Chinese retail data is also increasing the pressure. China retail sales grew 17.7% from a year ago, below the 24.8% increase in April.
China's crude oil output rose 7.5% in April compared to the same month last year, but remained below the peak seen in the last quarter of 2020.
With growing concerns about the spread of the epidemic in Asia, Brent prices are expected to remain in the trading range this week and find support at around $ 63 per barrel.
Meanwhile, US power firms increased the number of oil and gas rigs during the third week as high crude oil prices prompted drillers to return to the wells.
Tensions in the Middle East are escalating between Israel and Gaza's ruling Hamas militant group, which is entering its second week on Monday and has no end despite calls for an international ceasefire.
Unless the fight spreads to the oil producing countries in the region, there will be a limited impact on the oil market.
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