Brent oil steadied after a coronavirus-driven washout on Monday that saw prices tumble to an eight-week low.
Futures in London held near $69 a barrel after plunging 6.8% on Monday amid a broader market rout. The fast-spreading delta variant of Covid-19 has led to a surge in virus cases and renewed restrictions as it sweeps the globe, raising the prospect of a prolonged hit to oil consumption.
Oil’s upward trajectory has reversed in July, with the latest virus waves demonstrating the uneven nature of the economic recovery. Goldman Sachs Group Inc. said the delta variant may curb global oil demand by 1 million barrels a day for a couple of months, though that’s offset by a slow production ramp-up from OPEC+.
