Tensions In The Middle East Rise, What Happens To Oil Prices?

 Oil prices declined further after being pressured by uncertainty in the market following concerns over the spread of Delta virus variants in major consumer countries would reduce fuel demand.

The United States and China, the two largest oil consumers in the world, are struggling with the very rapid contagion of the Delta variant, so much so that analysts worry that it will limit demand.

In the United States, hospitalization rates due to Covid-19 have been reported to have increased to record highs, particularly among people who have not been vaccinated.

Meanwhile in China, the virus has spread to remote cities prompting the authorities to implement tighter measures to curb it.

In the Asian session, Brent crude futures fell 0.3% to $ 72.19 a barrel, while US WTI crude fell 0.5% to $ 70.23 a barrel.

WTI oil trading had fallen below $ 70 a barrel in the previous session, but returned to stability after being supported by tensions in the Middle East.

On Tuesday, three maritime security sources alleged that Iranian -backed forces seized an oil product tanker off the coast of the United Arab Emirates, though Tehran denied the report.

This is the second attack on a tanker since Friday in the province. The US and the UK have blamed Iran for an attack on an Israeli -owned oil tanker outside Oman that claimed two lives.

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