Oil price falls for sixth consecutive day amid spike in fresh COVID-19 cases

Crude oil prices have dropped for the sixth consecutive day — longest losing streak since February 2020 — amid spike in fresh COVID-19 cases globally.

Brent, the global oil benchmark, fell by 2.14 percent to $66.09, on Thursday morning.

This is the sixth consecutive fall since the commodity recorded a downward spiral on August 12.

Prior to the fall, Brent crude traded at $71.44 before dropping by a week low amid a decline in refining output in China and fresh outbreaks in COVID-19.

U.S. West Intermediate crude (WTI) also fell by 2.9 percent to $63.02 per barrel.

Brent slumped more than five percent, while WTI dropped over seven percent during the six-day losing streak.

This development occurs amid rising cases of COVID-19 fuelled by the Delta variant.

It has increased fears over slower fuel demand as countries adopt new lockdown measures to curtail spread of the virus.

A surprise build in US gasoline inventories also added to pressure, fuelling concerns over slowing demand.

According to the Energy Information Administration (EIA), US crude inventories fell 3.2 million barrels last week to 435.5 million barrels, their lowest since January 2020.

In Nigeria, a decline in the price of Brent will affect government revenue as crude oil remains the major source of foreign exchange.

Meanwhile, in June, Brent crude crossed the $75 mark — its highest level since April 2019 — granting a potential boost to Nigeria’s oil export revenue.