Oil drops toward $62 on concern resurgent virus will sap demand

Oil fell amid concern a resurgent virus will hurt demand in some economies, and after data showed a slight build in US inventories.

West Texas Intermediate was 0.5% lower in early Asian trading following a drop of more than 1% on Tuesday, when crude joined a broad-based retreat in equities and other commodities. The renewed spread of Covid-19 in countries such as India is casting a pall over the global economic rebound, even as signs of an improvement in energy demand elsewhere continue to pile up.

Oil’s value has risen more than a quarter this year as vaccines are rolled out, paving the way for a relaxation of lockdowns, greater economic activity, and increased mobility.