Oil posts biggest loss since March on virus comeback

Oil posts biggest loss since March on virus comeback

Oil declined the most this week since March as a resurgence of Covid-19 threatened the outlook for global fuel consumption in the near-term. Futures in New York edged up but settled 3. 7% lower for the week. The rapidly spreading delta variant is triggering renewed restrictions on movement as it sweeps across the globe. The UK is considering stricter measures due to a surge in cases, Singapore is shutting hundreds of nightlife venues, and in the US, a mask mandate has been reinstated in Los Angeles County. At the same time, crude markets face prospect of extra supplies from the Opec+ coalition. A stronger dollar has also dimmed the appeal of commodities priced in the US currency this week. Crude has surged about 13% over the last three months as a global vaccine rollout helps restore economic activity. Forecasters from the International Energy Agency (IEA) to Citigroup Inc predict that the market will get tighter in coming months. Still, concerns over demand in the near-term are causing the structure of the US crude market to weaken. While there's still a premium on the most immediate contracts "” a condition known as backwardation that signals tight supplies "” it has eased