SULAIMANI (ESTA) — Oil prices fell for a sixth day, its lowest since May, pressured by concerns about weaker demand as coronavirus cases rise, a stronger U.S. dollar and a surprise rise in U.S. gasoline inventories.
Brent crude was down $2.10 cents at $66.13 a barrel by 1203 GMT, after touching the lowest since May 24 at $67.10 earlier in the session.
U.S. West Texas Intermediate (WTI) crude fell $2.25 to $63.21 per barrel after falling to as low as $64.24, also the lowest since May 24.
Both Brent and U.S. crude have declined for six days in a row, the longest losing streak since a six-day drop for both contracts that ended on Feb. 28, 2020, according to Reuters.
Circulation of the Delta variant in areas of low vaccination is driving transmission of COVID-19, the World Health Organization said.
Coronavirus-related deaths have spiked in the United States over the past month.
“The longer-than-anticipated battle against the invisible enemy has made investors cautious and pragmatic, leading to gradually softer prices,” Reuters cited Tamas Varga of oil broker PVM as saying
“The potential withdrawal of monetary support, the chaotic Taliban takeover of Afghanistan that threatens with another migrant crisis and worries about the continuous spread of the virus keep the dollar in demand, which, in turn, acts as a break on any attempted oil-price rally.”
An unexpected rise in U.S. gasoline inventories in a weekly supply report added to demand concerns, given demand for the motor fuel typically peaks during the northern hemisphere summer, according to Reuters.
The strong U.S. dollar is adding to the pressure, Reuters said. The dollar has rallied on expectations the Federal Reserve will start tapering its stimulus this year. A strong dollar makes oil more expensive to other currency holders and tends to weigh on prices.
*This story was updated at 03:11 p.m. EBL time
