Oil down for third day amid continuing virus concerns
Oil fell in Asia for the third consecutive day on Wednesday, as the rising number of coronavirus cases globally continues to cast a shadow on the fuel demand outlook.
Brent oil futures slid 0.03% to $72.39 by 11:34 PM ET (3:34 AM GMT) and WTI futures dropped 0.20% to $70.42. Both futures went down on Tuesday to their lowest levels since July 21, before managing to salvage some of the losses as the session closed.
The continually rising numbers of COVID-19 cases in the US and China, the top two importers of oil globally, continues to pose a threat to the fuel demand outlook.
In China, the spread of the more virulent Delta variant from the coastal areas to the inland cities has forced authorities to impose strict measures in an attempt to curb the outbreak.
Elsewhere, Iran belied reports of the country’s involvement in a second attack on an oil tanker on Tuesday. Rising geopolitical tensions in the Middle East could potentially offset demand concerns.
In other related news, US crude oil data from the American Petroleum Institute released on Tuesday have revealed a draw of 879,000 barrels for the week ending July 30.