Oil was down Tuesday morning in Asia, as the fast-spreading Delta variant of COVID-19 in some countries dimmed the fuel demand outlook. Investors also await an Organization of the Petroleum Exporting Countries and allies (OPEC+) meeting later in the week.
Brent Oil Futures fell 0.38% to $73.86 by 10:20 PM ET (2:20 AM GMT) and Crude Oil WTI Futures slid 0.32% to $72.68. Oil has gained around 10% in June 2021 due to the economic recovery from COVID-19 in markets including the U.S. and China.
However, the U.K. reported the highest daily rise in COVID-19 cases on Monday since Jan. 30.
Hong Kong, Spain and Portugal banned all passenger flights from the nation to curb the spread of outbreaks involving COVID-19's Delta variant. Meanwhile, the Australian cities of Sydney,
Darwin, Perth and Brisbane reimposed lockdown measures to curb the country's latest COVID-19 outbreak.
On the supply side, OPEC+ is expected to increase supply by 500,000 to 1 million barrels a day in August when the cartel meets on Thursday.
In data to be reviewed at the meeting, OPEC+ forecasts that global oil markets will remain in deficit in 2021 if it keeps output steady. Fuel demand is expected to surpass supply by 1.7 million barrels a day in August, according to estimates to be presented to the Joint Technical Committee.
Meanwhile, U.S. crude oil supply data from the American Petroleum Institute is due later in the day.