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LONDON, Aug 9 (Reuters) – Oil costs fell greater than 3% on Monday, extending final week’s steep losses on the again of a rising U.S. dollar and considerations that new coronavirus-related restrictions in Asia, particularly China, may halt a world restoration in gas demand.
Brent crude futures fell by $2.43, or 3.5%, to $68.27 a barrel by 0800 GMT after a 6% droop final week for his or her greatest weekly loss in 4 months.
U.S. West Texas Intermediate (WTI) crude futures fell $2.41, or 3.6%, to $65.87 after plunging by almost 7% final week of their steepest weekly decline in 9 months.
“Concerns about potential global oil demand erosion have resurfaced with the acceleration of the Delta variant infection rate,” RBC analyst Gordon Ramsay stated in a be aware.
ANZ analysts pointed to new restrictions in China, the world’s second-largest oil shopper, as a significant component clouding the outlook for demand progress.
The restrictions embrace flight cancellations, warnings by 46 cities in opposition to journey and limits on public transport and taxi providers in 144 of the worst hit areas.
On Monday China reported 125 new COVID-19 circumstances, up from 96 a day earlier. In Malaysia and Thailand, infections hit each day information. learn extra
China’s export progress slowed greater than anticipated in July after outbreaks of COVID-19 circumstances and floods whereas import progress was additionally weaker than anticipated. learn extra
“Both (benchmark crude) contracts look vulnerable to more bad news on the virus front, focusing on mainland China,” OANDA senior market analyst Jeffrey Halley stated in a be aware.
China’s crude oil imports fell in July and had been down sharply from the file ranges of June 2020. learn extra
A rally within the U.S. dollar to a four-month high in opposition to the euro additionally weighed on oil costs after Friday’s stronger than anticipated U.S. jobs report spurred bets that the Federal Reserve may transfer extra shortly to tighten U.S. financial coverage.
A stronger U.S. dollar makes oil dearer for holders of different currencies.
Reporting by Dmitry Zhdannikov
Additional reporting by Sonali Paul
Editing by David Goodman
Our Standards: The Thomson Reuters Trust Principles.
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