Global oil prices declined on Monday due to concerns over the spread of the Delta variant in China, the WSJ reported.
- Brent crude prices slipped 4% to $67.87 a barrel, while the West Texas Intermediate futures fell around 4% on early trading, with both on track for their lowest close in over two months.
- The decline comes amid the spread of the Delta variant COVID-19 in China, the world’s biggest oil importer. The country is adopting a “zero-tolerance” policy with the implementation of stringent quarantine restrictions.
- Customs data show that the country imported less crude per day in July, which investors expect could be sustained due to the restrictions. This would bring down oil and commodity prices, taking down pressure on firms.
Analysts expect oil demand to outpace supply, but analysts remain wary of how markets perform as economies continue to recover from the pandemic.
OILK is down 3.31%, while BNO is down 3.22%.