Oil rally stalls, weighed down by virus worries

Washington, Aug. 26, (dpa-AFX/GNA) – Oil prices fell on Thursday for the first time this week, as fresh pandemic outbreaks fuelled by the Delta variant of the coronavirus raised concerns about the strength of the economic recovery globally.

Benchmark Brent crude futures were down 0.9 per cent at 70.61 dollars a barrel, after having climbed 1.7 per cent in the previous session. US West Texas Intermediate crude oil futures fell more than 1 per cent, to 67.64 dollars a barrel, after gaining 1.2 per cent on Wednesday.

Oil dropped after the biggest three-day gain since March amid renewed concerns about demand, as Russia reported its highest daily coronavirus death count and Australia exceeded 1,000 daily Covid-19 infections for the first time since the start of the pandemic.

The return of output in Mexico also weighed on prices. Pemex said it has restored about 17 per cent of the more than 400,000 barrels per day in oil production it lost due to a fire that erupted on an offshore platform on Sunday.
GNA