Monday, 9 August 2021

Oil slides 4% on China virus curbs and strong dollar | Reuters

Oil slides 4% on China virus curbs and strong dollar | Reuters

Oil prices fell by 4% on Monday, extending last week's steep losses on the back of a rising U.S. dollar and concerns that new coronavirus-related restrictions in Asia, especially China, could slow a global recovery in fuel demand.

A United Nations panel's dire warning on climate change also added to the gloomy mood after fires in Greece have razed homes and forests and parts of Europe suffered deadly floods last month. read more

Brent crude futures fell by $2.66, or 3.9%, to $68.04 a barrel by 1212 GMT after a 6% slump last week for their biggest weekly loss in four months.

U.S. West Texas Intermediate (WTI) crude futures fell $2.67, or 4.07%, to $65.61 after plunging by nearly 7% last week. On Monday the contract fell as low as $65.15, its lowest since May.

"Concerns about potential global oil demand erosion have resurfaced with the acceleration of the Delta variant infection rate," RBC analyst Gordon Ramsay said in a note.

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