Global oil prices declined on Monday, as the spread of the COVID-19 delta variant dampened sentiment and spurred concerns of another wave in several regions.
- Futures in New York fell to 1.9%, the West Texas Intermediate for August delivery shed 50 cents to $74.06 a barrel, and Brent in September lost 53 cents to $75.02 on Monday trading.
- Analysts attributed the decline to the spread of the COVID-19 delta variant in Asia and Europe. New restrictions were also imposed in Japan, South Korea, and Vietnam which weighed on demand.
- Global demand may also be pulled down by the deceleration of China’s economic recovery, with retail sales and industrial production widely expected to moderate.
- Volatility is likewise driven by the uncertainty on production after the Organization of the Petroleum Exporting Countries and its allies last week stalled talks, following disagreements regarding production cuts.
Prices were also hit by the greenback, as dollar-priced commodities are currently less attractive.
VDE is down 0.19%.