On Monday, August 2, the oil market traded sharply lower for the first time since July 19. Brent plunged 2.7% to $72.9/bbl, sliding $2/bbl on the day below $73/bbl, while WTI saw an even steeper decline, shedding 3.02% to $71.06/bbl.
The market was spooked by business restrictions imposed in Beijing yesterday for the first time since 2020. In addition, Indonesia announced nearly a 25% a reduction in gasoline imports over the past 10 days amid the spread of the Delta coronavirus variant across the country.
Oil prices continue to decline this morning and by the time of writing, Brent WAS down 0.58% and WTI was off 0.5%, trading below $71/bbl. Our Brent price forecast for today is in the range of $71.8-72.7/bbl.