Oil Posts Biggest Week of Losses in Nine Months as Delta Variant Spreads

Oil prices closed out their biggest week of losses in more than nine months with another down day on Friday, as investors sold futures in anticipation of weakened fuel demand worldwide due to a surge in Covid-19 cases.
The crude market has now posted seven consecutive days of losses. Numerous nations worldwide are responding to the rising infection rate due to the coronavirus Delta variant by adding travel restrictions to cut off the spread, Reuters reported.
China has imposed stricter disinfection methods at ports, causing congestion, nations including Australia have ratcheted up travel restrictions and global jet fuel demand is softening after improving for most of the summer.
Brent crude fell 8% on the week, settling down $1.27, or 1.9%, to $65.18 a barrel, its lowest since April and down about 8% for the week. US West Texas Intermediate crude for September settled down $1.37, or 2.2%, to $62.32 a barrel on Friday, to lose more than 9% for the week.
China, the world’s largest crude importer, has imposed new restrictions with its “zero tolerance” coronavirus policy, which is affecting shipping and global supply chains. The United States and China have also imposed flight-capacity restrictions.
Several US companies have delayed return-to-office plans. Apple Inc, the largest US company by market value, is delaying the return of its workers until early 2022. 
While the Delta variant drags on fuel demand, supply is steadily increasing. US production rose to 11.4 million barrels per day in the most recent week and drilling firms added rigs for the third week in a row, services company Baker Hughes said.
The Organization of Petroleum Exporting Countries and its allies are slowly boosting supply that had been curbed early in the pandemic.