The Covid-19 Delta variant could dampen global oil demand and threaten U.S. natural gas activity if the rapid spread of the virus continues into the fall.

Vaccine levels

In the United States, overall case totals and hospitalizations remain lower than the highs reached last winter before vaccine campaigns were widespread. However, reported infections are on the rise in August across the country, and Americans hospitalized with severe cases of coronavirus are surging in states with below average inoculation rates.

Over the first two weeks of August, the average number of new U.S. hospitalizations increased nearly 60% from the start of the month, according to Johns Hopkins University analyses of state and federal data. Louisiana and Florida posted record-high hospitalization rates this month as...