Oil prices fell more than 1% as Delta surge clouds fuel demand outlook

Oil prices fell more than 1% on Monday, dropping for a third session, as government-imposed restrictions on mobility to counter the spread of the Delta variant raised worries about a recovery in fuel demand.

Brent crude was down 80 cents, or 1.1%, at $69.79 a barrel by 0046 GMT, after edging lower last week.

U.S. oil fell by 81 cents, or 1.2%, to $67.63 a barrel, having risen slightly last week.

“Crude oil remained under pressure as the fast spreading Delta variant of the coronavirus casts a cloud over the outlook for demand,” ANZ Research said in a note.

Official data from China on retail sales, industrial production and urban investment is expected to show that a recent tightening of coronavirus restrictions prompted declines in activity in the world’s second-biggest economy in July.