Oil dropped towards $66 a barrel on Thursday to its lowest since May, pressured by concerns about weaker demand as COVID-19 cases rise, a stronger U.S. dollar and a surprise increase in U.S. gasoline inventories.
Brent crude, the global benchmark, is down almost $2 at $66.25 a barrel, the lowest levels seen since May, knocked by concerns about weaker demand amid a global rise in Covid cases.
Both Brent and US crude have declined for six days in a row, the longest losing streak since late February 2020.
According to the Energy Information Administration (EIA), US crude inventories fell 3.2 million barrels last week to 435.5 million barrels, their lowest since January 2020.
Meanwhile, in June, Brent crude crossed the $75 mark, its highest level since April 2019, granting a potential boost to Nigeria’s oil export revenue.
Less than a month later, oil climbed $77.78 per barrel — the highest since October 2018.
But the spread of the COVID-19 Delta variant globally has created more speculation for falling oil prices.