(Bloomberg) -- Oil declined at the open after posting the biggest weekly loss since October as a Covid-19 resurgence across the globe raised concerns about the short-term demand outlook.
Futures in New York fell toward $67 a barrel in early Asian trading after sliding almost 8% last week. China has completed a mass coronavirus testing program in Wuhan -- the original epicenter of the pandemic -- following new confirmed cases in the region, while infections in Germany have climbed and deaths in Russia remain near a record high.
Oil has run into stiff headwinds this month as the fast-spreading delta variant sweeps across the globe, leading to renewed restrictions on movement in some regions and coinciding with a production boost from OPEC+. The International Energy Agency will provide an updated snapshot of the market on Thursday.
The prompt timespread for Brent was 35 cents a barrel in backwardation -- a bullish structure where near-dated contracts are more expensive than later-dated ones. That compares with 69 cents a week earlier.
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