Restrictions in Asia intensify fuel demand, concerns about lower oil prices

According to a report from Reuters in Tokyo on May 17th, as the main U.

On Sunday, the gasoline shortage that plagued the East Coast of the United States gradually eased.

As of 0036 GMT, Brent crude oil futures fell 8 cents, or 0.

The two contracts rose nearly 2.

"As the peak of the COVID-19 epidemic is spreading from India to other parts of Asia, oil prices are under pressure, which intensifies people's concerns about the slowdown in fuel demand recovery," said Kazuhiko Saito, chief analyst at commodity broker Fujitomi Co.

He said: "We expect Brent crude oil prices to remain within a trading range this week, and the support price is expected to be around $63 per barrel.

Investors remain cautious because of concerns that the highly transmissible coronavirus mutation first discovered in India is spreading to other countries.

Some Indian states said on Sunday that they will extend the lockdown period for COVID-19 to help contain the pandemic that has killed more than 270,000 people.

　　Singapore will close most schools from Wednesday because the number of COVID-19 infections reported by the city-state has reached its highest level in months.

　　At the same time, energy services company Baker Hughes Co.

　　"As long as this struggle does not spread to oil-producing countries in the region, the impact on the oil market will be limited," Fujitomi's Saito said.

　　Shen Hanye excerpted and translated from Reuters

　　The original text is as follows:

　　Oil edges lower as COVID-19 restrictions in Asia fuel demand concerns

　　Oil prices edged lower on Monday as the recovery of a major US pipeline network eased concerns over supply and a new wave of COVID-19 restrictions in Asia fuelled fears of lower demand.

　　Gasoline shortages that have plagued the US East Coast slowly eased on Sunday, with 1,000 more stations receiving supplies as Colonial Pipeline's 5,500-mile (8,900-km) system recovered from a crippling cyberattack.

　　Brent crude oil futures were down 8 cents, or 0.

　　The two contracts jumped nearly 2.

　　"Oil prices are under pressure as a spike in the COVID-19 pandemic is spreading from India to other parts of Asia, which increased concerns over slower recovery in fuel demand," said Kazuhiko Saito, chief analyst at commodities broker Fujitomi Co.

　　"We expect Brent prices to stay in a trading range this week, with support expected at around $63 a barrel," he said.

　　Investors remained cautious on worries that the highly transmissible coronavirus variant first detected in India is spreading to other countries.

　　Some Indian states said on Sunday they would extend COVID-19 lockdowns to help contain the pandemic, which has killed more than 270,000 people in the country.
There are fears that the nation's annual budget may fall flat as it did not account for a crippling second wave of COVID-19 infections.

　　Singapore will shut most schools from Wednesday after the city-state reported the highest number of COVID-19 infections in months, while Japan has declared a state of emergency in three more prefectures hit hard by the pandemic.

　　Meanwhile, US energy firms added oil and natural gas rigs for a third week in a row as higher crude prices prompt some drillers to return to the wellpad, energy services firm Baker Hughes Co said on Friday.

　　In the Middle East, Israel and Gaza's ruling Hamas militant group faced mounting international calls for a ceasefire in hostilities that entered their second week on Monday with no end in sight.

　　"As long as the fight does not spill over to oil-producing countries in the region, there will be limited impact on the oil market," Fujitomi's Saito said.
(Reporting by Yuka Obayashi; Editing by Stephen Coates)