After heavy losses earlier in the week, oil prices also fell on Tuesday. A barrel (159 liters) of North Sea Brent cost $ 72.45, 0.6 percent less. The price of a barrel of the American variety WTI fell 0.9% to $ 70.63. On Monday, disappointing economic data from China and the United States pushed oil prices down. Weak economic data from the world’s two largest economies is fueling investors in the oil market about weaker demand for the commodity.
Additionally, the spread of the delta variant of the coronavirus remains a burden on oil prices. The highly infectious Delta variant is forcing governments to reintroduce or expand restrictions. In China, for example, the Delta variant has passed some of the toughest virus protection measures in the world. Peking residents have been warned not to leave the capital, flights have been canceled and some towns and villages have been cordoned off by local authorities. “Oil prices have defied gravity so far this year, but the effects of the Delta variant have started to limit the increase,” said Howie Lee, economist at Oversea-Chinese Banking Corp. It appears that oil consumption in Asia is starting to fluctuate and prices are likely to consolidate until a clearer picture emerges.
After intermittent gains, the euro came under pressure in the afternoon. The dollar benefited from strong orders data. New orders for industry increased significantly more than expected in June. In addition, they had also climbed more sharply than expected in May. The common European currency hardly changed at 1.1864 dollars.