Oil prices slide as much as 4.5% as Delta coronavirus variant outbreak threatens global recovery

Oil prices slumped on Monday as investors fretted that the continued rise in cases of Delta-variant coronavirus would knock the global economic recovery and reduce demand for energy.

Brent crude oil was down 4.17% to $67.75 a barrel in European trading, falling to its lowest level in three weeks. WTI crude was 4.44% lower at $65.25 a barrel, having slipped as much as 4.5%.

The Delta coronavirus variant is spreading rapidly around the world, driving up Covid case numbers in the US, Europe and even China.

In the US, the seven-day average of cases was 110,360 on Sunday, up from 56,987 two weeks earlier, according to New York Times data.

“The Covid-19 comeback led by the rapidly-spreading Delta variant continues to raise concerns about the short-term outlook,” said Steen Jakobsen, chief investment officer at Saxo Bank.

Oil prices have rebounded sharply in 2021 as economies have reopened, and the OPEC-plus