Oil heads for longest run of losses since March on coronavirus threat

Bloomberg

Oil fell for a fourth day, heading for the longest run of losses since March, on the threat to demand from the delta coronavirus variant.
West Texas Intermediate futures declined 0.5% after losing almost 3% over the previous three sessions. US gasoline consumption fell for a third week, according to a survey by Descartes Labs, while data from China revealed a slowdown in the economy last month.
“The ongoing battle against the latest virus outbreak is showing up in economic data, and when the reading is disheartening in the world’s second-biggest economy investors take notice,” said Tamas Varga, an analyst at PVM Oil Associates.
After a vigorous rally in the first half of the year, crude’s advance has been checked in recent weeks. The Delta variant has spurred fresh curbs on mobility in many nations including China, harming energy consumption. Against that backdrop, JPMorgan Chase & Co has been among banks reducing oil price forecasts.
WTI for September delivery lost 33 cents to $66.96 a barrel in New York. Brent for October fell 20 cents to $69.31 a barrel.
The benchmark grade’s prompt timespread was 40 cents a barrel in backwardation, down from 62 cents a month ago, showing emerging concerns about oversupply
While demand has been challenged, the Organization of Petroleum Exporting Countries and its allies including Russia have stayed the course in relaxing their output curbs imposed in the early phase of the pandemic.