2021.08.1910:00:00UTC+00Oil Extends Losses For Sixth Day

Oil fell more than 3 percent Thursday to its lowest since May as stronger U.S. dollar and a surprise build in U.S. gasoline inventories added to concerns about weaker demand.

Benchmark Brent crude futures fell more than 3 percent to $66.14 per barrel, while U.S. crude futures were down as much as 3.4 percent at$63.02 a barrel, falling below $65 for the first time since May.

Equities stumbled, global bond yields fell and the dollar hit a nine-month peak after minutes of the July 27-28 Fed meeting revealed an emerging consensus among policymakers to begin tapering asset purchases in coming months.

Fed officials widely concluded that the economy had reached its goal on inflation and was "close to being satisfied" with the progress of job growth.

Meanwhile, a surprise increase in U.S. gasoline inventories suggested the spread of the delta coronavirus variant was weighing on fuel demand.

Data released by Energy Information Administration (EIA) late Wednesday showed gasoline stockpiles unexpectedly increased by 700,000 barrels last week, the first increase in more than a month as a result of an increase in coronavirus cases worldwide.

Circulation of the Delta variant in areas of low vaccination is driving transmission of COVID-19, the World Health Organization said.

The International Energy Agency last week trimmed its oil demand outlook due to the spread of the Delta variant while OPEC left its demand forecasts unchanged.