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Oil Down Over Fuel Demand Concerns, Investors Await OPEC+ Meeting

Oil was down Tuesday morning in Asia, as the fast-spreading Delta variant of COVID-19 in some countries dimmed the fuel demand outlook. Investors also await an Organization of the Petroleum Exporting Countries and allies (OPEC+) meeting later in the week.

Brent Oil Futures fell 0.38% to $73.86 by 10:20 PM ET (2:20 AM GMT) and Crude Oil WTI Futures slid 0.32% to $72.68. Oil has gained around 10% in June 2021 due to the economic recovery from COVID-19 in markets including the U.S. and China.

However, the U.K. reported the highest daily rise in COVID-19 cases on Monday since Jan. 30. Hong Kong, Spain and Portugal banned all passenger flights from the nation to curb the spread of outbreaks involving COVID-19's Delta variant. Meanwhile, the Australian cities of Sydney, Darwin, Perth and Brisbane reimposed lockdown measures to curb the country's latest COVID-19 outbreak.

On the supply side, OPEC+ is expected to increase supply by 500,000 to 1 million barrels a day in August when the cartel meets on Thursday.

In data to be reviewed at the meeting, OPEC+ forecasts that global oil markets will remain in deficit in 2021 if it keeps output steady. Fuel demand is expected to surpass supply by 1.7 million barrels a day in August, according to estimates to be presented to the Joint Technical Committee.