The bearish mood in WTI crude oil extends into Friday, making the commodity all set to post its worst weekly performance seen in almost 10 months amid the spread of the delta variant forcing authorities to bring back restrictions. At the time of writing, WTI crude oil is trading at around $69.17 per barrel.

So far this week, WTI oil has lost around 6.6% of its value, marking the steepest decline in oil prices seen since late October 2020. Weighing on the sentiment was China’s decision to impose strict curbs on travel across several cities, a move that can hurt fuel demand significantly.

The highly contagious delta variant has forced Japan to extend and widen the scope of its restrictions as well. Meanwhile, at the world’s largest energy consumer – US, daily infections due to COVID-19 have crossed the 100k mark, further hurting the mood among investors who were anticipating strong economic and travel activity spurring oil demand.

However, crude oil received some support over rising geopolitical tensions between Israel and Iran. Tensions began earlier this week after an attack on an oil tanker off the coast of Oman, leading to increased hostilities and exchange of fire on the borders.