SULAIMANI (ESTA) — Oil prices fell for a second day on Tuesday on worries about slower fuel demand growth as outbreaks of the highly contagious COVID-19 variant Delta sparked new mobility restrictions around the world.
Brent crude futures dropped 15 cents to $74.53 a barrel by 0746 GMT, after slumping 2% on Monday.
U.S. West Texas Intermediate (WTI) crude futures fell 6 cents to $72.85 per barrel, extending a 1.5% loss on Monday.
The increase in cases of the Delta variant comes as OPEC+, a group includes OPEC, Russia and allies, is set to meet on July 1 to discuss easing their supply curbs.
OPEC+ demand forecasts show that in the fourth quarter global oil supply will fall short of demand by 2.2 million barrels per day (bpd), giving the procedures some room to agree to add output.
“We expect the cartel to release 250 [thousand barrels per day] of supply curbs from August onwards. Failure to turn on the taps further may see Brent top $80 [a barrel] by next month,” Reuters quoted Howie Lee, economist at OCBC Treasury Research in Singapore, as saying.
