Oil Settles Lower due to Recovery Concerns

Oil prices declined on Monday, with economic data in the world’s two biggest economies renewing concerns over the pace of recovery from the coronavirus pandemic, especially with the spread of the Delta variant.

Factory production and retail sales in China slowed sharply last month, while in the United States, the New York Fed’s Empire State business conditions index dropped to its lowest level since March.

Brent crude futures for October delivery closed lower by $1.08, or 1.53%, at $69.51 per barrel, its lowest closing level since August 5.

The West Texas Intermediate (WTI) crude futures for September delivery lost $1.15, or 1.7%, and finished at $67.29 per barrel.

With the third consecutive daily loss, both the global and U.S. benchmarks finished at their lowest closing level since August 9, with the largest decline since the same session.