Oil losses continue with the increasing outbreak of “Delta” and the revival of shale crude activity

Oil prices fell today, Monday, for the third day in a row, as the outlook for global demand for crude was affected by the continued spread of the Delta virus, and data on the increase in the number of rigs in the United States caused additional pressures on crude prices.

In Asia, outbreaks of new viruses are beginning to weigh on the Chinese economy, with industrial production slowing, and at the same time, cases of the virus continue to be close to record in countries such as Thailand, Vietnam and the Philippines.
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West Texas Intermediate crude for September delivery fell 1.1% to $67.71 a barrel on the New York Mercantile Exchange.
Brent crude for October delivery fell 1% to $69.87 a barrel on the ICE Futures Europe exchange.

After rising in the first half, oil price hikes have been waning since mid-July, as delta outbreaks, including in main consumer China, erode consumption expectations while reimposing movement restrictions. “OPEC +” is in plans to gradually increase production, and ease supply restrictions that it imposed in the early days of the epidemic.

“Delta concerns are tightening their grip on oil market sentiment,” said Vandana Hari, of energy consultancy Vanda Insights, adding that the summer travel and tourism boom in the West is fading.

Harry predicts that the oil market will remain in flux, at least until the delta wave shows a significant and sustainable downturn, especially in the United States and China.

Data on Monday showed economic activity in China slowed more than expected in July, as retail sales and industrial production missed expectations and the unemployment rate rose.

And there are signs that US shale oil producers are ramping up their activities, as the total number of rigs drilling for oil across the country rose by 10 last week to 397, marking the biggest weekly jump since April, according to data from Baker Hughes Inc.