Crude oil prices stabilized Tuesday morning, after a three-day decline that was driven by the growing threat to demand from the spread of the delta-variable coronavirus.
US WTI was trading near $67 after losing nearly 3% over the previous three sessions. As for the benchmark Brent crude, it is trading below $70.
U.S. gasoline consumption fell for a third week, according to a survey by (Decartes Labs), while data from China revealed a slowdown in economic activity in the world's largest oil importer. the world during July.
Meanwhile, demand in India, another major oil consumer, remains largely resilient.
After a sharp rally in the first half, the rally in crude oil in July and August was capped. The delta variable has caused new restrictions on movement in many countries including China, which is hurting energy consumption. Against this backdrop, JPMorgan lowered its oil price forecast.
While demand is facing challenges, the Organization of the Petroleum Exporting Countries and its allies, including Russia, have maintained the path of easing production restrictions imposed in the first phase of the epidemic.
Daily supplies will rise by 400,000 barrels per day this month.
The group's next regular meeting is scheduled for September 1, and follows a call from US President Joe Biden earlier this month to pump more production. To lower gasoline prices.
The decline in crude oil on Monday reflected concerns about the impact of Delta on demand, according to the Goldman Sachs Group. However, this challenge will be fleeting, as the bank said it is sticking to its forecast that Brent crude will reach $80 a barrel in the next quarter, amid a persistent market deficit.
