Oil Drops to Lowest Closing Level in Three Months

Oil prices declined on Wednesday, finishing at the lowest closing level since May, amid concerns over the spread of the coronavirus Delta variant and an expected negative impact on the recovery of energy demand.

Earlier today, data showed a large drop in U.S. crude inventories to their lowest level since January of last year.

Inventories dropped by 3.2 million barrels in the week ending August 13, reaching 435.5 million barrels, according to data by the U.S. Energy Information Administration (EIA), which also showed another decline in distillate inventories by 2.7 million barrels, while gasoline stockpiles increased by 696,000 barrels to a total of 228.2 million barrels.

Brent crude futures for October delivery fell by 80 cents, or 1.2%, to close at $68.23 per barrel, while the West Texas Intermediate (WTI) crude futures for September delivery dropped by $1.13, or 1.7%, to finish at $65.46 per barrel.

This is the fifth consecutive session for both futures to finish in losses, the longest losing streak since March 18, leading to their lowest closing level since May 21.