Oil prices are set to post their biggest weekly losses this year, as the spread of the Delta virus variant continues to cast doubt on the recovery of global fuel demand, particularly China as the world’s largest importer of crude oil.
U.S. WTI crude oil trading has declined around 6.4% this week, the largest weekly decline ever recorded since late October. While Brent crude was down 6.5%, the biggest fall since March.
China, the world’s second -largest oil consumer, has implemented tighter travel restrictions in some cities by suspending flights and stopping public transport, which are seen to threaten fuel demand.
A worse situation is also seen in the United States, where new daily Covid-19 cases have risen to a six-month high, with more than 100,000 infections reported nationwide.
However, rising tensions in the Middle East helped support oil prices from falling lower, which is seen as bad news for nuclear deal negotiations between Iran and world powers.
At the beginning of the European session, US WTI crude futures were little changed by trading at $ 69.17 a barrel, while Brent crude oil traded at $ 71.39 a barrel.
