Oil falls on fears for Delta spread.
Oil under strong bearish pressure, continuing the yesterday’s losses – as trader focus has now fully shifted to the rapidly spreading Delta coronavirus variant. Concerns over the spread of Delta variant in the United States and China, the top oil consumers, is currently the primary factor affecting oil prices. In China, the spread of the variant from the coast to inland cities has prompted authorities to impose strict measures to bring the outbreak under control. Delta-related concerns will likely keep oil markets volatile over the coming weeks. Furthermore, expectations of a return of Iranian crude to the market are also driving the prices down. Iran’s new president, Ebrahim Raisi, said on Tuesday his government would take steps to lift “tyrannical” sanctions imposed by the United States on its energy and banking sectors.
Expect sellers on upward corrections.
Next support to watch – 69,35