SULAIMANI (ESTA) — Oil prices edged lower on Monday as concerns about fuel demand from the spread of coronavirus variants and floods in China offset expectations of tight supplies through the rest of the year.
Brent crude futures for September fell 97 cents to $73.13 a barrel by 0635 GMT while U.S. West Texas Intermediate (WTI) crude was at $71.10 per barrel, down 93 cents.
Coronavirus cases continued to rise over the weekend with some countries posting record daily increase and extending lockdown measures that could slow oil demand.
China, the world’s largest crude importer, has also seen a rise in coronavirus cases while the nation battled severe floods and a typhoon in central and eastern parts of the country.
“The delta variant is still spreading and China has started to clamp down on teapots so their import growth would not be that much,” Avtar Sandu, a senior commodities manager at Singapore’s Phillips Futures, told Reuters, referring to independent refiners.
He said investors were looking ahead to the next Federal Reserve meeting and U.S. oil inventories data this week for price direction, according to Reuters.
Global oil markets are expected to remain in deficit despite a decision by the Organization of the Petroleum Exporting Countries and their allies to raise production through the rest of the year.
