Oil surges on potential supply cuts

World oil prices are rising on Tuesday morning amid a possible reduction in supplies due to the spread of the COVID-19 delta strain. Investors are also assessing the prospects for demand when the epidemiological situation worsens, according to trading data.

Report informs citing Prime that as of 8.40 (Baku time), the price of September futures for Brent decreased by 0.28% - to $ 75.36 per barrel, August futures for WTI - by 0.34%, to $74.35 per barrel.

Oil investors continue to assess the risks of a potential reduction in crude supplies due to the possible introduction of new quarantine restrictions. Traders' fears are related to the spread of the COVID-19 delta strain, which could negatively impact demand and overall economic recovery.

Uncertainty around the OPEC+ deal continues to hang over the market. Investors expect the alliance to increase oil production, but the details of the agreement remain unknown.

The oil price rush that brought Brent crude to $78/bbl has all but dissipated as OPEC+ disagreements have faded into the background, giving way to market concerns about renewed COVID-19 cases worldwide, Rystad Energy analysts told the Wall Street Journal.