The crude oil prices declined because of the countries which are not vaccinated yet continue the fight with the delta variant. The prospect is also attacked by the bearish major news. 

The short – term movers are all negative and the lockdown in Brisbane is extended. The CDC increases the travel warning status to the south Korea. It is one level higher to the level 2.

The infection theme is spreading in all over the China and most of the areas in Asia. The aim is to take a tighter action due to this problem. The vaccination in the USA is really well. 

That country reaches the target of 70% for the adult where they are at least have been vaccinated once. The delta variant spread is getting higher in several countries at the moment. 

The Decline Must be Limited

Aside from all the bearish sentiment  with the oil prices, market is still deficit. That is why; the decline must be limited. The WTI crude oil may be consolidated around the level of USD 70.

The crude oil prices step back during the middle APAC session on Monday. That was happened ed after it increased by 2.2 percent for the last a week. The release of PMI manufacture also shows something. 

The China NBS PMI manufacture release is worse than the expectation and it is weighting on the energy price. That country is now still trying to maintain the growth amidst the increasing COVID-19 Cases. 

The factory activities measure is legally declining to the level of 50.5 in July and 50.9 in June. That second largest economy country in the world is surviving to make the condition is better. 

The New Lockdown is Applied Everywhere

The quick spread of the delta variant causes the new lockdown circle in all over the world. That is shadowing the prospect of energy demand which is existing right now on the market. 

Million of people are testing for the COVID-19 infection and the trip restriction is done in several affected zones. Sydney has beem extending its lockdown for 4 more weeks. 

It means that it will be applied until 28 of August 2021. The tighter trip restrictions and social distancing steps are creating an impact. That makes the fuel demand is lower in the future. 

Furthermore, the oil price increase is also limited. Elsewhere, the gold is trapped in a consolidation above USD 1800 because of the investors are waiting for the employment report. 

The Fed Decisions are Awaited

The investors really want to know first how the situations will affect the decisions taken by the Federal Reserve. It is especially about how the economy can develop to their substantial progress. 

The global obligation yield result is declining. However, the hold is a little higher in that session although it is a little bit hard to see a lot of certainties in that commodity, especially in a condition. 

It is when the stock market continues to make the new highest record. That market has been becoming the busy one-way area and that can trigger the huge reactions. 

It is especially if a further progress is made in the employment market or if the inflaion risk is growing. Now, the market participants are also awaiting for the tapering decision. 

The Fed has Been locked a Decision

There is a question whether the Fed will do a tapering in September or at the end of the year. It seems that the institution has been locked in a result absence approach until now. 

It means that a reduction will be done. The United States economy data will be good in the future. However, gold must be supported by the Fed is the employment market is not recovered soon. 

If that commodity doesn’t hit above the level of USD 1850 post-nonfarm payrolls, it will bring the worst impact. The Fed Minneapolis president gave his opinion about that. 

He said that the delta variant can make some Americans don’t find for a job. That has a strong potential to break the employment market in that country.