Wednesday 11 August 2021

Oil drops on China fuel demand concerns as Delta coronavirus surges | Reuters

Oil drops on China fuel demand concerns as Delta coronavirus surges | Reuters

Oil prices dipped on Wednesday as analysts cut their forecasts for fuel demand in China following mobility curbs from the spread of the highly infectious Delta variant of the coronavirus, offsetting a bullish outlook for U.S. fuel demand.

U.S. West Texas Intermediate (WTI) crude futures fell 18 cents, or 0.3%, to $68.11 a barrel at 0500 GMT, after a 2.7% jump on Tuesday.

Brent crude futures dropped 16 cents to $70.47 a barrel, following a 2.3% gain on Tuesday.

While both contracts have reclaimed their 100-day daily moving average, a technical chart indicator, they appeared to lack the momentum to stage meaningful revivals as Delta variant fears continued to weigh on markets, said Jeffrey Halley, OANDA's senior market analyst for Asia Pacific.

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