Oil Prices Drop on Demand Concerns

Oil prices fell from the level of $ 74 a barrel on Friday, July 23. Still, it is on track to end the week with little change, after rebounding from a sharp decline on Monday, supported by expectations that supply will remain tight despite the recovery in demand.

Oil prices and other risky assets fell at the start of the week on concern about the impact on the economy and demand due to the increased cases of the mutated delta strain of COVID-19 in the United States, Britain, Japan, and elsewhere.

Brent crude was down 11 cents, or 0.2%, at $73.68 a barrel by 0810 GMT, after jumping 2.2% on Thursday.

Texas Intermediate crude fell 18 cents, or 0.3%, to $71.73 a barrel, after rising 2.3% yesterday.

Both contracts fell about 7% on Monday, but they made up for all those losses, with investors expecting demand to remain strong and the market receiving support from falling oil stocks and high vaccinations rates.

Demand growth is expected to outpace supply after an agreement on Sunday between the Organization of the Petroleum Exporting Countries and its allies, part of the OPEC + group, to return 400,000 barrels per day each month from August.