US Oil Prices Dropped 8%

West Texas Intermediate crude Oil Prices fell below the key $70 level Monday. For the first time in more than a month as OPEC and its allies agreed to raise output, and as the delta Covid variant threatens global demand.

U.S. oil settled 7.51% lower at $66.42 per barrel for its worst day since September 2020, after trading as low as $65.47 during the session. The contract is now more than 13% below its recent high of $76.98 from July 6, which was the highest level in more than six years. International benchmark Brent crude slipped 6.75% on Monday to settle at $68.62 per barrel

Energy stocks move lower on the heels of oil’s decline. The group dipped 4.5%, making it the worst-performing S&P 500 sector. Occidental, Diamondback Energy, Schlumberger and Marathon Oil were among the biggest decliners, each falling more than 6%.Despite Monday’s downturn, some Wall Street firms believe a tight market will continue to support prices. Credit Suisse raised its forecasts Sunday night and now sees Brent averaging $70 per barrel in 2021, up from a prior estimate of $66.50. The firm raised its WTI forecast to $67 for the year, up from $62.

UBS said that oil demand growth outpacing supply growth in the near term, we still expect a tight summer, which should boost Oil Prices. The firm envisions Brent climbing to $80 before retreating to $75 by the end of the year.According to AAA, the Oil Prices have returned to pre-pandemic levels, fuel prices have jumped. The national average for a gallon of regular gas stood at $3.17 on Monday, up 97 cents over the last year.