Daily Times

Crude prices fell for a seventh consecutive day on Friday amid concerns over weakening demand due to a surge in the Covid-19 delta variant, a brawny US dollar and a surprise increase in US gasoline inventories.

At 1115 hours GMT, Brent, the international benchmark for two-thirds of the world’s oil, shed $0.38 (-0.57 percent) to reach $66.06 a barrel, its lowest since May. Similarly, the US West Texas Intermediate (WTI) reached $63.17, down by $0.52 (-0.82 percent).

The price for Opec Basket was recorded at $69.40 a barrel with 0.36 percent decrease, Arab Light was available at $67.77 a barrel with 0.86 percent decrease, while the price of Russian Sokol slipped to $66.45 after shedding 0.76 percent.

Oil prices continued to trade lower on demand concerns as Covid-19 delta variant spreads across the globe forcing governments to introduce movement restrictions and other preventive measures. The strong US dollar is also weighing on prices. Even the latest drawback in the US inventories couldn’t give a smile to the oil bulls, while the US inventories declined more than three million barrels last week, more than twice as much as the 1.5 million barrels pencilled in by analysts. The strong US dollar as well as a surge in the coronavirus cases globally especially in the Far East and in the US are raising fears that economic recovery might have temporarily slowed down, denting oil demand.