The major price drivers now . . .Update: WTI Crude Drops on Concerns Over OPEC+ Breakdown and Rising Covid-19 Infections
2021-07-12 02:40:22 PM ET (MT Newswires)
02:40 PM EDT, 07/12/2021 (MT Newswires) -- West Texas Intermediate (WTI) crude oil prices fell Monday on rising Covid-19 infections and continuing concern that last week's collapse of OPEC+ talks will lead to the end of production discipline among group members.
WTI crude for August delivery closed down US$0.46 to US$74.10 per barrel, Marketwatch reported. September Brent crude, the global benchmark, was last seen down US$0.43 to US$75.12, while Western Canada Select was down US$0.98 to US$60.86 per barrel.
The drop comes as the Covid-19 Delta variant continues to rage globally, with southeast Asian countries reporting a record number of new infections and new cases in the United States on the rise as vaccination programs stall, threatening to limit recovering demand.
Concerns that the collapse of OPEC+ talks last week will lead to a renewed contest for market share among the group's member is also weighing on prices.
"The major price driver now appears to be the rise of Covid cases globally, the Delta variant in particular, and its potential impact on global demand ... OPEC talks on output broke down last week, after Saudi Arabia and the UAE fought over output levels. With no new talks scheduled, the point may come where some producers walk away from current production caps and open the spigots," Action Economics said in a note.