Oil prices are stable after a sharp drop the day before

Oil prices are stable on Tuesday after falling more than 3% during the previous session, Interfax reports.

Traders fear that the rapid spread of the new COVID-19 Delta strain in Asian countries, including China, will force states to impose new quarantine restrictions, which will weaken the region's economic recovery and oil demand.

"The spread of the delta strain is holding back the oil market," said an economist at Oversea-Chinese Banking Corp. Howie Lee. "It seems that oil consumption in Asia has begun to weaken, and the market is likely to consolidate until traders have a clearer picture of demand."

By 8:10 Kyiv time on Tuesday, the cost of Brent October futures is $72.84 per barrel on the London stock exchange ICE Futures, which is $ 0.05 (0.07%) below the price at the close of the previous session. As a result of trading on Monday, these contracts fell by $2.52 (3.3%) to $72.89 per barrel.

By this time, the price of WTI September futures is $71.2 per barrel in electronic trading on the New York Mercantile Exchange (NYMEX), which is $0.06 (0.08%) below the final value of the previous session. The day before, the value of these contracts decreased by $2.69 (3.6%) to $71.26 per barrel.

The authorities of Indonesia, the largest consumer of gasoline in Asia, announced on Monday that quarantine restrictions in several regions will be extended until August 9 due to the high incidence of COVID-19. During the period from July 3 to 25, the first wave of quarantine measures introduced in the country after the appearance of the Delta strain, Indonesia has cut gasoline imports by almost a quarter, Bloomberg reported.

Tags: oil, Asia, coronavirus, price, petroleum products, oil deliveries, quarantine, pandemic, economy, China

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