WTI crude falls below $70 amid COVID-19 Delta variant concerns

Oil rigs

Oil prices declined on Wednesday, with West Texas Intermediate (WTI) crude falling below the $70-mark amid concerns over rise in coronavirus Delta variant cases.

The international benchmark Brent crude was trading down 0.8% at $72.83 per barrel, at 2.25 pm Makkah time.

WTI crude fell 1.1% to $69.79 per barrel.

China and the United States -- the world's largest oil consumers -- are struggling with the Delta variant, stoking fears that it will lead to reduced demand for crude oil.

"Seasonal weakness in economic activity amid rising cases of the Delta variant continue to weigh on sentiment," Reuters reported, citing ANZ note.

"Nearly half of China's provinces have been gripped by the latest outbreak. This comes as the summer travel season hits its peak. This is likely to see crude oil demand come under pressure."

Meanwhile, according to American Petroleum Institute data, US crude stockpiles fell by 879,000 barrels for the week ended July 30.

US Energy Information Administration (EIA) will release official data on crude inventories later today.