Oil prices extended their decline on Tuesday as concerns over the surge in Covid-19 variants globally mount and markets factored in an additional supply from the Opec+ group of producers.
Brent, the international benchmark, lost about 9 per cent of its value from its settlement on Friday, while West Texas Intermediate, the main US gauge, fell 10 per cent.
The crude markers slipped below $70 per barrel during trading this week after Opec+, a group of oil producers headed by Saudi Arabia and Russia, resolved a weeks-long deadlock and agreed to an output deal.
Brent was trading at $68.80 per barrel at 12.53pm UAE time, while WTI was down to $66.78 per barrel.
The S&P 500 and the Nasdaq composite fell 2.09 per cent and 1.06 per cent in Monday trading. The Dow Jones Industrial Average dropped 1.59 per cent, its worst day since October.
"The sell-off was triggered by an increase in Covid cases caused by the Delta variant, which is currently the most common strain in the majority of countries," Naeem Aslam, chief analyst at AvaTrade, said.
"Oil prices have fallen due to uncertainty about the future outlook of demand for oil, as investors fear the resumption of lockdowns and a boost in supply subsequent to the Opec+ agreement," he added.
The Covid-19 Delta strain has spread rapidly across the developing world and led to renewed restrictions in some countries which had previously contained the spreading of the virus.
In the UK, which is now facing a resurgence of Covid-19 cases, the pound weakened against the dollar to $1.364 on Monday, its lowest level since February. It was trading at 1.367 on Tuesday at 1.18pm UAE time.
"It must be kept in mind that the economic recovery remains fragile with the Bank of England expecting unemployment to rise as the furlough scheme winds down in September," said Lukman Otunuga, senior research analyst at FXTM.
"Surging infections and the uncertainty it presents are the last things the UK economy needs at such a crucial period," he added.
On Sunday, Opec+ agreed to bring 400,000 barrels per day back to the markets in August and will revise baselines used to calculate quotas from May 2022, following requests by several countries, including the UAE.
Under the latest agreement, the UAE's new production baseline will increase to 3.5 million bpd, from 3.168 million bpd previously. Other producers – including Iraq, Kuwait, Saudi Arabia and Russia – will also see their baselines rise.
Oil markets stabilised following a nearly 7 per cent sell-off in the markets during the opening session on Monday.
The specs: 2018 Nissan 370Z Nismo
The specs: 2018 Nissan 370Z Nismo
Price, base / as tested: Dh182,178
Engine: 3.7-litre V6
Power: 350hp @ 7,400rpm
Torque: 374Nm @ 5,200rpm
Transmission: Seven-speed automatic
Fuel consumption, combined: 10.5L / 100km
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ESSENTIALS
The flights
Emirates flies from Dubai to Phnom Penh via Yangon from Dh2,700 return including taxes. Cambodia Bayon Airlines and Cambodia Angkor Air offer return flights from Phnom Penh to Siem Reap from Dh250 return including taxes. The flight takes about 45 minutes.
The hotels
Rooms at the Raffles Le Royal in Phnom Penh cost from $225 (Dh826) per night including taxes. Rooms at the Grand Hotel d'Angkor cost from $261 (Dh960) per night including taxes.
The tours
A cyclo architecture tour of Phnom Penh costs from $20 (Dh75) per person for about three hours, with Khmer Architecture Tours. Tailor-made tours of all of Cambodia, or sites like Angkor alone, can be arranged by About Asia Travel. Emirates Holidays also offers packages.
The specs: Lamborghini Aventador SVJ
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Engine: 6.5-litre V12
Gearbox: Seven-speed automatic
Power: 770hp @ 8,500rpm
Torque: 720Nm @ 6,750rpm
Fuel economy: 19.6L / 100km
THE SPECS
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Transmission: 6-speed automatic
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Killing of Qassem Suleimani
The Outsider
Stephen King, Penguin
Australia (15-1): Israel Folau; Dane Haylett-Petty, Reece Hodge, Kurtley Beale, Marika Koroibete; Bernard Foley, Will Genia; David Pocock, Michael Hooper (capt), Lukhan Tui; Adam Coleman, Izack Rodda; Sekope Kepu, Tatafu Polota-Nau, Tom Robertson.
Replacements: Tolu Latu, Allan Alaalatoa, Taniela Tupou, Rob Simmons, Pete Samu, Nick Phipps, Matt Toomua, Jack Maddocks.
Company profile
Name: Thndr
Started: October 2020
Founders: Ahmad Hammouda and Seif Amr
Based: Cairo, Egypt
Sector: FinTech
Initial investment: pre-seed of $800,000
Funding stage: series A; $20 million
Investors: Tiger Global, Beco Capital, Prosus Ventures, Y Combinator, Global Ventures, Abdul Latif Jameel, Endure Capital, 4DX Ventures, Plus VC, Rabacap and MSA Capital
The Bio
Amal likes watching Japanese animation movies and Manga - her favourite is The Ancient Magus Bride
She is the eldest of 11 children, and has four brothers and six sisters.
Her dream is to meet with all of her friends online from around the world who supported her work throughout the years
Her favourite meal is pizza and stuffed vine leaves
She ams to improve her English and learn Japanese, which many animated programmes originate in