Oil prices fell on Wednesday in international markets due to concerns over the spread of the delta variant virus in the world’s largest energy-consuming countries, as this could reduce their demand. In the London market, the price of a barrel fell by 67 cents compared to the previous close, to $71.74. In the U.S. market, the barrel decreased by 86 cents, trading at $68.70.
Concerns are rising due to the spread of the delta variant of the coronavirus in China, which is putting significant pressure on oil prices – analysts from ING bank reported.
The U.S. and China, the world’s largest oil consumers, are trying to curb the rapid spread of the delta variant infection, and analysts fear that any new movement or activity restrictions could reduce fuel demand at a time when it traditionally rises in both countries. In China, the spread of this variant from the coast to inland cities has prompted authorities to implement strict measures to control the epidemic.
The expected decline in U.S. inventories has somewhat limited the drop in oil prices. U.S. crude oil inventories fell by 879,000 barrels in the week ending July 30. Gasoline inventories decreased by 5.8 million barrels, and distillate stocks fell by 717,000 barrels, according to unofficial data. Official data from the U.S. government will be released later on Wednesday. OPEC announced today that the price of a barrel of its members’ reference basket was $72.71 on Tuesday, which is $1.18 lower than the previous working day.
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