Oil down 1%; Covid-19 pandemic surge, renewed Mexico supply end rally

Oil fell about 1% on Thursday on renewed concerns over demand due to rising COVID-19 infections and as Mexico restored some output after a fire disrupted supplies.

Losses were limited by the potential for other supply interruptions. Energy companies prepared for the possibility of a severe storm hitting the U.S. Gulf Coast this weekend.

Brent crude was down 53 cents, or 0.7 %, at $71.47 a barrel by 1:25 p.m. EDT (1725 GMT). U.S. West Texas Intermediate oil declined 35 cents to $68.01 a barrel, snapping a three day rally.

Fresh COVID-19 outbreaks fueled by the Delta variant are raising concerns about the strength of the economic recovery globally.