Home ›› 05 Aug 2021 ›› World Biz
Oil prices slipped on Wednesday as the spread of the coronavirus Delta variant in top consuming countries outweighed Mideast geopolitical tensions and a fall in US inventories.
Brent crude oil futures were down 26 cents, or 0.4 per cent, to $72.15 a barrel by 1031 GMT US West Texas Intermediate (WTI) crude fell 42 cents, or 0.6 per cent , to $70.14 a barrel.
“Worries continue to grow over the spread of the Delta variant in China, which has weighed heavily on oil prices in recent days,” analysts at bank ING said.
The United States and China, the world’s two biggest oil consumers, are grappling with rapidly spreading outbreaks of the highly contagious Delta variant that analysts fear will limit fuel demand at a time when it traditionally rises in both countries.
In China, the spread of the variant from the coast to inland cities has prompted authorities to impose strict measures to bring the outbreak under control.
An expected fall in US inventories, however, capped some losses, and both contracts traded slightly higher earlier in the session.
” bulls have drawn support from U.S. inventory dynamics, with commercial stocks falling to their lowest since January 2020 and indications that the tightening is set to continue,” oil brokerage PVM said.
US crude inventories fell by 879,000 barrels for the week ended July 30, according to two market sources, citing figures from industry group American Petroleum Institute (API).
Gasoline inventories fell by 5.8 million barrels and distillate stocks fell by 717,000 barrels, the data showed, according to the sources, who spoke on condition of anonymity.
