Oil Markets Uncertain Over Delta Demand Destruction

Following an important agreement among the OPEC+ members last month, oil prices have fallen in the last week, dropping by more than 9% since their highest recorded level last July. Brent closed at $69.76 on Monday while WTI closed at $67.56 with a narrowing spread of $2.20. While the observed path may well be a market correction following a period of significant speculation on demand recovery, the markets now seem to have realized the potential impact of the delta variant of COVID-19 on global oil markets. Furthermore, the Chinese…