Oil Prices Bearish In Biggest Losing Streak Since February 2020

Oil prices slid for the sixth day, the longest losing streak since February 2020, as a spike in COVID-19 cases worldwide fuelled fears over slower fuel demand.

Brent crude was down 87 cents, or 1.3%, at $67.36 a barrel by 05:47 WAT, after touching the lowest since May 24 at $67.10 earlier in the session.

U.S. West Intermediate crude (WTI) fell $1.05, or 1.6%, to $64.41 a barrel after falling to as low as $64.24, also the lowest since May 24.

WTI has dropped over 7% while Brent has slumped more than 5% during the six-day losing streak, the longest since a six-day decline for both contracts that ended on Feb. 28, 2020.

Prices have fallen as investors remained worried over the increase in infections caused by the Delta variant of the coronavirus worldwide, with virus-related deaths in the United States, the world’s largest oil user, spiking over the past month.

A surprise build in U.S. gasoline inventories last week also boosted concerns over slowing demand, especially as the Northern Hemisphere summer is typically when demand for the fuel peaks.

Gasoline stockpiles rose by 696,000 barrels to 228.2 million, the Energy Information Administration said on Wednesday, against analysts’ expectations for a 1.7 million-barrel drop.

However, the EIA said that U.S. crude inventories fell 3.2 million barrels last week to 435.5 million, their lowest since January 2020.

According to the Energy Information Administration's monthly drilling productivity report, U.S. shale oil output is expected to rise to 8.1 million barrels per day in September, the highest since May 2020.