Oil declines amid rise in COVID-19 Delta variant cases

Oil rigs

Oil prices declined on Tuesday amid a rise in coronavirus cases, and as investors tracked demand-related developments ahead of the OPEC+ meeting on July 1.

The international benchmark Brent crude was trading down 0.2% at $74.51 per barrel, at 9.00 am Makkah time.

WTI crude fell 0.1% to $72.81 per barrel.

“Oil prices are trimming back because of rising concerns about the spread of the COVID-19 Delta variant,” Bloomberg reported, citing 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.

On Monday, June 28, the UK reported the most new COVID-19 cases since January. Also, Hong Kong, Spain and Portugal all imposed new restrictions to visitors from the nation.

According to media reports, OPEC+ may make a decision to increase production starting August, on the sidelines of the July 1 meeting.