TheCable

Crude oil prices fell for the third consecutive day on Wednesday over concerns about rising cases of the COVID-19 delta strain in top consuming countries.

Brent crude, the international benchmark, declined further to $71.22 a barrel while U.S. West Texas Intermediate (WTI) futures fell 2.11 percent to $69.07 per barrel.

The United States (US) and China – the largest oil consumers globally – are grappling with rapidly increasing cases of the highly contagious delta variant, thus pushing pressure on oil prices.

The delta variant is more contagious than the other COVID-19 strains: Alpha, discovered in Britain; Beta in South Africa; and Gamma in Brazil. 

Analysts predict that if the new strain continues to rise, it will limit fuel demand at a time when the Organisation of Petroleum Exporting Countries and its allies (OPEC+) are gradually increasing supply.

Also, the fall in oil prices has been attributed to recent geopolitical tensions in the Mideast Gulf.

According to Reuters, three maritime security sources alleged that Iran seized an oil product tanker off the coast of the United Arab Emirates (UAE). The Iranian authorities denied the report.

The heightened tension comes amid a nuclear deal between major international powers and Iran over its nuclear program.

In another incident, United Kingdom, United States, and Israel have also blamed Iran for a drone attack on an oil tanker off the coast of Oman that killed two sailors, the Islamic republic also denied involvement.