Oil prices fell by 4% on Monday, extending last week’s steep losses on the back of a rising U.S. dollar and concerns that new coronavirus-related restrictions in Asia, especially China, could slow a global recovery in fuel demand.
Brent crude futures fell by $2.43 to $68.27 a barrel after a 6% slump last week for their biggest weekly loss in four months.
U.S. West Texas Intermediate (WTI) crude futures fell $2.4 to $65.87 after plunging by nearly 7% last week in their steepest weekly decline in nine months.
A United Nations panel’s dire warning on climate change also added to the gloomy mood after fires in Greece have razed homes and forests and parts of Europe suffered deadly floods last month.
According to analysts, concerns about potential global oil demand erosion have resurfaced with the acceleration of the Delta variant infection rate,
The restrictions include flight cancellations, warnings by 46 cities against travel and limits on public transport and taxi services in 144 of the worst hit areas.