MELBOURNE/SINGAPORE, Aug 11 (Reuters) – Oil prices dipped on Wednesday as analysts cut their forecasts for fuel demand in China following mobility curbs from the spread of the highly infectious Delta variant of the coronavirus, offsetting a bullish outlook for U.S. fuel demand. U.S. West Texas Intermediate (WTI) crude futures fell 18 cents, or 0.3%, to $68.11 a barrel at 0500 GMT, after a 2.7% jump on Tuesday. Brent crude futures dropped 16 cents to $70.47 a barrel, following a 2.3% gain on Tuesday. While both contracts have reclaimed their 100-day daily moving average, a technical chart indicator, they appeared to lack the momentum to stage meaningful revivals as Delta variant fears continued to weigh on markets, said Jeffrey Halley, OANDA’s senior market analyst for Asia Pacific. “Short-term momentum has waned quickly in Asia,” he added. Beijing has imposed travel curbs that will reduce fuel demand in the world’s second-largest oil consumer, prompting Goldman Sachs to cut its demand forecast for China by 1 million barrels per day for the next two months. “Our base case remains that the Delta wave will impact demand – including in China – for only two months, consistent with prior cycles, including most recently in India,” the bank said. Industry data showed U.S. crude oil and gasoline inventories fell last week, while the U.S. Energy Information Administration raised its forecast for fuel demand in 2021 and said consumption in May through July was higher than expected, supporting prices. U.S. crude stocks fell by 816,00 barrels and gasoline stocks fell by 1.1 million barrels in the week ended Aug. 6, according to two market sources, citing data from the American Petroleum Institute. Both drawdowns were a bit smaller than analysts polled by Reuters had expected. The EIA’s monthly report showed that the need for supply from the Organization of the Petroleum Exporting Countries (OPEC) will exceed OPEC supply by 1 million barrels per day in the third quarter and by 300,000 bpd in the fourth quarter of 2021, Commonwealth Bank commodity analyst Vivek Dhar said in a note. “With OECD commercial crude oil stockpiles having dropped back to pre‑COVID levels already, a tightening oil market outlook will likely amplify oil price gains,” he said. Nick Note: This is all well and good. BUT as usual what they forget to tell you is the US is quietly banning foreign travel. AND country after country is shutting down visitors from America. Remember 40% of transportation fuel is consumed by air liens in good times. China and Asia and throw in Australia is sucking shut. The travel and leisure industry have become masters at blowing blue sky up our collective asses.Notice how their are no studies or even data collection of people who become infected after traveling……99% of the corona-19 spread has been by international travelers on airlines. As we speak their are two other mutations ravishing other parts of the world. I am VERY concerned about the The beta variant outbreaks in South Africa, along with gamma variant that is ravishing Brazil. More on this in other news postings. Yes i believe our test kits will pick up these variants.If they would just halt all air travel for 3 weeks and TEST the shit out of everyone like the china model and these variants will burn themselves out…. We both know that will not happen until its to late