Oil prices fall on U.S. crude stock build, Delta variant spread
Oil prices fell for a third day in a row to a two-week low on Wednesday on a surprise build in U.S. crude stockpiles and as the spread of the coronavirus Delta variant outweighed the impact of Mideast geopolitical tensions.
The U.S. Energy Information Administration (EIA) said crude stockpiles rose 3.6 million barrels during the week ended July 30.
That compares with the 3.1-million barrel draw analysts forecast in a Reuters poll and the 0.9-million barrel decline the American Petroleum Institute (API) reported on Tuesday.
Brent futures fell $2.03, or 2.8%, to settle at $70.38 per barrel, while U.S. West Texas Intermediate (WTI) crude settled $2.41, or 3.4%, lower at $68.15 per barrel.
That puts both benchmarks on track for their lowest since July 20. For Brent, it puts the contract down for a third day in a row for the first time since late May.
“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.
Reference: CNBC
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