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Taper talk, Delta cases push down oil, boost dollar

Oil fell to its lowest levels since May while the U.S. dollar surged to a nine-month high, as rising COVID-19 cases worldwide and the prospect of a looming Federal Reserve taper threw cold water on risk appetites.

Oil was down for its sixth straight session, with investors retreating over fears of weak demand amid a worsening pandemic and a rising U.S. dollar.

Brent crude lost 2.6%, to settle at $66.45 a barrel.

The most-active contract for U.S. West Intermediate (WTI) fell 2.6%, to $63.50 a barrel. It fell earlier to $62.41 a barrel.

The rise in Delta variant cases across the United States is weighing on hopes the economy could recover quickly, with recent economic data painting a murky picture.

Reference: Reuters