* Canadian dollar weakens 0.2% against the greenback * Loonie trades in a range of 1.2489 to 1.2542 * Price of U.S. oil falls 2.4% * Canadian 10-year yield touches its lowest since Feb. 18 TORONTO, Aug 3 (Reuters) - The Canadian dollar on Tuesday weakened for a third day against its U.S. counterpart as investors weighed the spread of the Delta variant of the coronavirus in some major economies, including the United States and China. Canada is a major producer of commodities, including oil, so its economy is sensitive to the global economic outlook. The price of oil fell as concern over rising cases of the Delta variant offset expectations of a decline in U.S. inventories. U.S. crude prices were down 2.4% at $69.53 a barrel, while the Canadian dollar fell 0.2% to 1.2540 to the greenback, or 79.74 U.S. cents. It traded in a range of 1.2489 to 1.2542. Speculators have cut their bullish bets on the Canadian dollar to the lowest since April, data from the U.S. Commodity Futures Trading Commission showed on Friday. As of July 27, net long positions had fallen to 5,374 contracts from 12,915 in the prior week. The Canadian employment report for July is due on Friday and could offer clues on the Bank of Canada policy outlook. Analysts expect the data to show employment rising by 177,500 as economic restrictions related to the pandemic eased. Canadian government bond yields were lower across a flatter curve, playing catch up with U.S. Treasuries after the Canadian market was closed on Monday for the Civic Holiday. The 10-year touched its lowest since Feb. 18 at 1.100% before rebounding slightly to 1.134%, down 6.9 basis points on the day. (Reporting by Fergal Smith; editing by Barbara Lewis) Our Standards: The Thomson Reuters Trust Principles.