As per the trusted sources of information, the prices of oil have reached low on Tuesday owing to the rising concern about the increase in cases of Delta Variant of the coronavirus pandemic. The concern had outweighed the expectations for a weekly draw in the US inventories, which has been raising the prices before. The futures of Brent crude oil had settled down by 48 cents or about 0.66% to reach a price of USD 72.41 per barrel.
The US West Texas Intermediate crude had settled for USD 70.56, which was a fall of 0.98% or 70 cents. The prices were held quite low in the post-settlement trade after the market sources stated that the preliminary data stated that the crude stocks drew in the United States.
Further, the rising concern over the spread of the Delta Variant of the COVID-19 infection in China and the United States, which are the top consumers of oil, weighed on the price and witnessed a fall in the benchmarks for more than 3% at a certain point.
Further, in China, the Delta Variant has been witnessing an increase in the number of cases from the inland cities to the coast, which has forced the government to impose restrictions on the movement of the people to bring the spread under control. Partner at Again Capital Management in New York, John Kilduff, stated that the news flow out of China has been looking bearish since the weekend. He further added that the lockdowns and restrictions have a major impact on petroleum.