Oil rally falters on pandemic surge, renewed Mexico supply
Oil settled lower on Thursday, snapping a three-day rally on renewed concerns over demand due to rising COVID-19 infections and as Mexico restored some output after a fire disrupted supplies.
Losses were limited by the potential for other supply interruptions. Energy companies prepared for the possibility of a severe storm hitting the U.S. Gulf Coast this weekend.
Brent crude settled down $1.18, or 1.6%, at $71.07 a barrel.
U.S. West Texas Intermediate oil settled down 94 cents, or 1.4% at 67.42 a barrel.
Fresh COVID-19 outbreaks fueled by the Delta variant raised concerns about the strength of the economic recovery globally.
Oil was also weighed down by broader weakness in equity markets later in the day, analysts said.
Reference: Reuters
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