• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 3 hours Solving The Space Problem For America’s Solar Industry
  • 14 hours How Far Have We Really Gotten With Alternative Energy
  • 31 mins Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 4 days Investment in renewables tanking
  • 8 days If hydrogen is the answer, you're asking the wrong question
  • 8 days "Mexico Plans to Become an Export Hub With US-Drilled Natural Gas" - Bloomberg - (See image)
Debt Ceiling Deal Optimism To Boost Oil Prices

Debt Ceiling Deal Optimism To Boost Oil Prices

Oil markets have kicked off…

OPEC+ Cuts Fail To Boost Middle East Oil Prices

OPEC+ Cuts Fail To Boost Middle East Oil Prices

As Middle Eastern producers were…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Oil Opens Lower As Delta Variant Fears Clash With Tight Supply

Oil prices were trading slightly down early on Monday after having fallen 1 percent in Asia trade, as the bullish factor of tight market countered the bearish factor of the Delta variant spreading in many countries.

As of 10:06 a.m. EDT on Monday, WTI Crude prices were trading slightly down, 0.46 percent at $71.68, and Brent Crude was down 0.20 percent at $73.90.

Prices had fallen earlier on Monday by 1 percent as cases of the Delta variant of COVID-19 continued to rise in many countries, including in the United States.

“Crude futures were softening early Monday in Asia as profit-taking returned on the back of a modest climb at Friday’s settle and the first week-on-week gain in prices after three consecutive weekly losses,” Vanda Insights said in a daily note early on Monday.

“With daily new Covid cases in the US continuing to rise, oil demand uncertainty was the main driver of market sentiment,” Vanda Insights noted.

A strong U.S. dollar ahead of Fed’s policy meeting was also weighing on the oil market early on Monday as a rising greenback makes holding crude more expensive for holders of currencies other than the U.S. dollar.

“With the OPEC+ drama behind us, volatility in the market has eased, which leaves the market with a couple of key known uncertainties for now,” ING strategists Warren Patterson and Wenyu Yao said early on Monday.

The key uncertainties, ING says, are the Delta variant spread and potential restrictions over it, plus the unknown with Iranian oil supply as the next round in the nuclear talks are due to start in early August after incoming Iranian President Ebrahim Raisi will be sworn in.

At the start of this week, the market is weighing the currently tight supply against fears of slowing demand growth if the Delta variant impacts mobility and travel.

“Last week’s huge slide and then equally sharp recovery took prices back to key retracement levels – near 74/bbl in Brent and 72-72.50 in WTI as the key focus remains the outlook for the ongoing global demand recovery amidst concerns on the impact of the Covid delta variant,” Saxo Bank said on Monday.


By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:

Download The Free Oilprice App Today

Back to homepage

Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News