Oil is cheaping due to concerns about the spread of the delta variant of the coronavirus. Does it fall below $70 a barrel?

oil rig

Brent crude oil was cheaping during Wednesday’s trading. Her prize was dragged down by concerns about the effects of spreading a more contagious variant of the coronavirus mutation, referred to as delta. New outbreaks have emerged in China.

Even at the turn of July and August, a barrel of brent crude oil on world markets was trading at more than $75. Three days later, there’s already been aloud talk that black gold could cheapen below the $70 it last traded less than a month ago.

But it was just a blip caused by a short period of time to split OPEC+ countries, which initially could not agree on a further step in increasing mining. Below $70, a barrel of brent-type oil traded through the end of May, and now the chance is growing that it will look below that critical threshold again.

“Continued concerns about the spread of the delta variant in China to the oil price are weighing heavily,” an analyst at ING banking group said for Reuters. China, along with the United States, is the largest oil consumer, and it is in the US that the Sars-Cov-2 delta virus mutation is also spreading rapidly. Thus, expectations of a downturn in oil demand are growing as the likelihood of some anti-epidemic measures being introduced, which may slow economic recovery in the two strongest economies of the world.


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