Delta coronavirus variant concerns hit oil prices

Oil settled lower on Tuesday, as concern about rising cases of the Delta coronavirus variant outweighed expectations for another weekly draw in US inventories that had boosted prices early.

Brent crude oil futures settled down 48 cents, or 0.66% at $72.41 a barrel, Reuters reported.

US West Texas Intermediate (WTI) crude settled down 70 cents, or 0.98% at $70.56 a barrel.

Prices held lower in post-settlement trade after market sources said preliminary data suggested crude stocks drew in the US.

Concerns over the spread of Delta variant in the US and China, the top oil consumers, weighed on prices, with both benchmarks falling more than 3% at one point.

In China, the spread of the variant from the coast to inland cities has prompted authorities to impose strict measures to bring the outbreak under control.

“The news flow out of China has been bearish since the weekend,” said John Kilduff, a partner at Again Capital Management in New York.

Brent has risen more than 40% this year.