Oil falling in price on fears of COVID Delta strain spread

Global oil prices are falling on June 29, investors are worried about the spread of the Delta coronavirus variant, according to trading data, Report informs referring to Prime agency.

As of 8:54 (GMT+4), the price of September futures for the North Sea Brent crude oil blend decreased by 0.45 percent to $73.81, the cost of August futures fell by 0.52 percent to $74.29. August futures for WTI oil dropped in price by 0.41 percent to $72.61 per barrel.

Traders are worried about the spread of a new Delta strain of COVID-19. The rise in the number of infection cases in some countries poses risks to the demand for crude, as against this background, restrictions on movement are re-introduced.

“Oil prices are trimming back because of rising concerns about the spread of the Covid-19 Delta variant,” said Victor Shum, vice president of energy consulting at IHS Markit. However, demand is spiking, driven by countries including the US, China, and the Middle East, he added.

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