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Oil Prices Climb Well Off Worst Levels But Still Close Lower

Following the sharp pullback seen in the previous session, the price of crude oil saw further downside during trading on Tuesday.

Crude for September delivery regained ground after falling as low as $69.19 a barrel but still ended the day down $0.70 or 1 percent at $70.56 a barrel.

The continued decrease by the price of crude oil, which plunged $2.69 or 3.6 percent to $71.26 a barrel on Monday, partly reflected concerns about the outlook for demand amid the rapid spread of the delta variant of the coronavirus.

Data from the Centers for Disease Control and Prevention has shown a jump in new coronavirus cases in the U.S. in recent weeks, with the seven-day moving average of new cases reaching 72,790 last Friday, surpassing the peak seen last summer.

The surge in new coronavirus cases has led to renewed lockdowns in some parts of the world, which have added to recent concerns about a slowdown in the pace of the U.S. economic recovery.

However, the increase has also seeming led to more Americans getting vaccinated, with the CDC saying 70 percent of U.S. adults have now received at least one dose of a coronavirus vaccine.

Weekly oil inventory data from the American Petroleum Institute is due later today, while the Energy Information Administration's weekly oil inventory data is due Wednesday morning.

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