|
Brent crude oil futures were down 67 cents, or 0.9%, to $71.74 a
barrel by 1144 GMT. U.S. West Texas Intermediate (WTI) crude
fell 86 cents, or 1.2%, to $69.70 a barrel.
"Worries continue to grow over the spread of the Delta variant
in China, which has weighed heavily on oil prices in recent
days," analysts at bank ING said.
The United States and China, the world's two biggest oil
consumers, are grappling with rapidly spreading outbreaks of the
highly contagious Delta variant that analysts fear will limit
fuel demand at a time when it traditionally rises in both
countries.
In China, the spread of the variant from the coast to inland
cities has prompted authorities to impose strict measures to
bring the outbreak under control.
An expected fall in U.S. inventories, however, capped some
losses, and both contracts traded slightly higher earlier in the
session.
"[Oil] bulls have drawn support from U.S. inventory dynamics,
with commercial stocks falling to their lowest since January
2020 and indications that the tightening is set to continue,"
oil brokerage PVM said.
U.S. crude inventories fell by 879,000 barrels for the week
ended July 30, according to two market sources, citing figures
from industry group American Petroleum Institute (API).
Gasoline inventories fell by 5.8 million barrels and distillate
stocks fell by 717,000 barrels, the data showed, according to
the sources, who spoke on condition of anonymity.
Official Energy Information Administration numbers are due later
on Wednesday.
Tensions in the Mideast Gulf also lent prices some support.
On Tuesday, three maritime security sources clamed
Iranian-backed forces seized an oil product tanker off the coast
of the United Arab Emirates, though Iran denied the reports.
This is the second attack on a tanker since Friday in the
region, which includes the Strait of Hormuz. The UK and the U.S.
are also blaming Iran for the earlier incident, in which drones
crashed into the vessel and killed two sailors.
(Additional reporting by Naveen Thukral in Singapore; editing by
Jason Neely)
[© 2021 Thomson Reuters. All rights
reserved.] Copyright 2021 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
.JPG)
