Oil extends losses as Delta variant slows demand recovery | Reuters

Oil extends losses as Delta variant slows demand recovery | Reuters

Oil prices fell for a second day on Friday after the International Energy Agency warned that demand growth for crude and its products had slowed sharply as surging COVID-19 cases worldwide forced governments to revive movement restrictions.

Brent crude was down 58 cents, or 0.8%, at $70.73 a barrel by 0630 GMT, after dropping 13 cents in the previous session.

U.S. crude was off by 65 cents, or 0.9%, at $68.44 a barrel, having fallen 0.2% on Thursday. The benchmarks are little changed this week.

"The sudden about-face by the IEA has shaken nerves and capped the oil rally, bringing home the reality of the impact of the Delta variant," said Jeffrey Halley, OANDA's senior market analyst for Asia Pacific.

Rising demand for crude ground to a halt in July and is set to rise at a slower pace over the rest of 2021 because of the surge in infections from the coronavirus Delta variant, the IEA said on Thursday. read more