Oil down amid renewed virus fears
Oil prices dropped on Thursday for the first time in a week. Concerns over demand recovery were brought back by renewed restrictions that have been imposed to tackle COVID-19 infections.
Brent crude edged down 0.6%, or 45 cents, at $71.80 a barrel by 0222 GMT, after climbing up 1.7% on Wednesday.
US oil dropped 0.8%, or 55 cents, at $67.81 a barrel, following its 1.2% rise in the previous session.
New outbreaks caused by the coronavirus’ Delta variant are fuelling concerns about the plight of the global economic recovery, dealing a blow on the demand for oil and other commodities.
US crude inventories fell in the previous week, according to the Energy Information Administration (EIA). The inventories’ drop for a third consecutive week helped boost prices around 10% through Wednesday, while overall fuel demand increased to its highest since March 2020.
This week’s gains have been boosted by a major outage in Mexico, where a fire on an offshore platform killed at least five workers and took out over 400,000 barrels per day (bpd) of production.
Pemex has so far regained 71,000 bpd of production and expects to add 100,000 bpd more in the next hours.