The price of oil and other key industrial commodities dropped on Monday after Chinese government measures to stop the Delta variant scared investors about global energy demand.
- Brent crude oil declined by 4% to $67.87 per barrel, and West Texas Intermediate futures was 4.3% down at $65.38 per barrel.
- The spread of the Delta variant Covid-19 cases has increased concerns in China and other East Asian economies. Beijing health officials reported last week the cancellation of all large-scale events.
- Customs records show that China imported lower crude per day in July than in June. Goldman Sachs downgraded the 2021 Chinese economic growth forecast to 8.3%.
Fears about the economic impact of China’s measures were felt across commodities markets, with metals prices trending downwards. Prices of aluminum and nickel also fell.
DXY down -0.01%, OKOIL down -2.29%
Source: The Wall Street Journal
