Oil Drops to $66, Lowest Since May on Demand Concerns

Oil fell to $66 a barrel on Thursday, the lowest level since May, under the weight of fears of weak demand with an increase in Covid-19 cases, a rise in the US dollar, and a sudden jump in US gasoline stocks.

The World Health Organization has warned of the spread of the mutated Delta strain of the Coronavirus in areas where vaccination rates are declining. And deaths related to the Coronavirus in the United States increased over the past month.

The dollar hit a nine-month high, which affected commodities priced in the US currency.

Brent crude was down $2.10, or 3.1%, at $66.13 a barrel, after touching its lowest level since May 21.

US West Texas Intermediate crude fell $2.28, or 3.5%, to $63.18 a barrel, after falling to $62.96, which is also the lowest level since May 21.

Both Brent and US crude has been falling for six consecutive days, in the longest losing streak since a six-day decline in both contracts, which ended on February 28, 2020.

A sudden rise in US gasoline stocks last week also raised concerns about slowing demand, especially since the northern hemisphere summer is the time when demand for fuel is usually peaked.