Oil prices slip as economic fears offset tightening crude supplies | Reuters

Oil prices slip as economic fears offset tightening crude supplies | Reuters

Oil slumped on Monday over concerns about spreading COVID-19 variants derailing the global economic recovery that has brought fuel demand to near pre-pandemic levels, while tight crude supplies kept prices from falling lower.

Brent crude for September settled at $75.16 a barrel, losing 39 cents, or 0.5%. U.S. West Texas Intermediate crude for August settled at $74.10 a barrel, down 46 cents, or 0.6%.

Both benchmarks shed about 1% last week, stalling out a rally that had brought both U.S. crude and Brent to levels not seen since October 2018.

Tokyo reimposed pandemic-related restrictions due to concerns over coronavirus infections, less than two weeks before the city hosts the Summer Olympic Games.

“It has raised hackles in the market about demand recovery again,” said John Kilduff, a partner at Again Capital in New York. “Asia is obviously essential. It’s a swing demand center, and this is a huge setback.”