SULAIMANI (ESTA) — Oil prices settled lower on Wednesday, as concern about rising cases of the Delta coronavirus variant outweighed expectations for another weekly draw in U.S. inventories that had boosted prices early.
Brent crude oil futures settled down 48 cents at $72.41 a barrel at 0930 GMT. U.S. West Texas Intermediate (WTI) crude fell 70 cents to $70.56 per barrel.
Prices held lower in post-settlement trade after market sources said preliminary data suggested crude stocks drew in the United States, according to Reuters.
Concerns over the spread of Delta variant in the United States and China, the top oil consumers, weighed on prices, with both benchmarks falling more than 3% at one point, Reuters reported.
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.
“The news flow out of China has been bearish since the weekend,” Reuters cited John Kilduff, a partner at Again Capital Management in New York, as saying.
“There continues to be angst about the COVID-19 situation, which weighs on the petroleum complex the most,” he added.
