Oil posts longest run of losses since March as recovery sputters

The rapid spread of the Delta variant of the coronavirus in many parts of the world has spurred fresh curbs on mobility and driven down energy consumption, including in China.

Oil fell for a fourth day, marking its longest run of losses since March, pressured by a rising dollar and economic data illustrating the U.S. recovery’s uneven path. Futures declined 1% on Tuesday. The dollar climbed, weakening the appeal of commodities priced in the currency. U.S. retail sales fell in July by more than forecast, while factory production strengthened the most in four months. Data from China on Monday revealed a slowdown in the economy last month. “Poor data coming out of China is ground zero for reignited global concern surrounding Covid-19,” says Phil Flynn, senior market analyst at Price Futures Group. “Although indicators in the U.S. shows a better situation than China, as the second largest economy, what happens in the region has huge market impact.”