Oil prices stabilized, after tumbling about 7% in the previous session, in light of a broader decline in the market, driven by concerns about the rise in Covid-19 infections, which comes at a time when producers reached a new agreement on supplies.< /p>

Brent crude gained 70 cents, or the equivalent of one percent, to $69.32 a barrel. The US crude contract for August delivery, which expires later today, rose 86 cents, or 1.3 percent, to $67.28 a barrel.

US crude for September delivery increased by about 1.2 percent to $67.14 a barrel.

Analysts said that the selling, which pushed prices to their lowest levels in two months, was driven by fears of the outbreak of the Delta strain of the Corona virus, while stocks fell and bonds rose.

An increase in infections with the delta strain of the Corona virus in some countries in Asia and Europe, and the possibility of imposing travel restrictions increased the uncertainty of demand for crude oil somewhat, analysts at ING Economics said in a note.

However, the physical market for crude oil has been witnessing a scarcity in recent months, while the ongoing economic recovery is likely to remain supportive of oil demand during the second half of the year.

US officials said Friday that the mutated strain Delta, which is significantly more contagious than previous strains, is now dominant in the world.

The strain has been monitored in more than 100 countries around the world and erratic vaccination campaigns in many places are undermining the fight against the virus, raising the prospect of more public isolation measures that have damaged demand for petroleum products.

But analysts say there are high-frequency indications that weekend restaurant reservations in the United States, the world's largest consumer of crude, are at pre-Covid levels, while domestic flights are at their highest levels since the pandemic began.

Oil was also hit after the Organization of the Petroleum Exporting Countries (OPEC) and its allies, the group known as OPEC+, reached a settlement on Sunday to boost production.

The OPEC+ deal removes more supply constraints that have been supporting the market for a year. OPEC + keeps about 5.8 million barrels per day of crude out of the market, a number that will drop to two million barrels per day by the end of 2021.