Oil falls in volatile session on concerns over COVID spread
Oil fell on Tuesday in volatile trade as concern over rising cases of the Delta coronavirus variant weighed on prices while expectations of a lower U.S. inventories lent some support.
Benchmark Brent crude oil futures declined 48 cents, or 0.66%, to settle at $72.41 per barrel.
U.S. West Texas Intermediate (WTI) crude slid 70 cents, or 1%, to settle at $70.56 per barrel.
Both had risen more than 60 cents earlier in the session.
Despite recent fluctuations, Brent has risen more than 40% this year, helping earnings of oil firms.
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.
Expectations of a return of Iranian crude to the markets also had a negative impact.
Iran’s new president, Ebrahim Raisi, said on Tuesday his government would take steps to lift “tyrannical” sanctions imposed by the United States on its energy and banking sectors.
Iran and six powers have been in talks since April to revive a nuclear pact. But Iranian and Western officials have said significant gaps remain.
Meanwhile, a preliminary Reuters poll showed U.S. crude and product inventories likely declined last week, with both distillates and gasoline stockpiles predicted to have fallen for a third straight week.
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