Oil slides 2% as growing Covid case count weighs on demand projections
Oil dropped towards $50 a barrel on Tuesday, adding to losses from the previous session, as a mutant variant of the coronavirus in Britain revived concerns over demand recovery.
Detection of the new variant prompted several countries to close their borders to Britain. The BBC cited France’s Europe Minister as saying that the two countries would announce a deal to restart freight by Wednesday.
Brent crude fell 83 cents, or 1.63%, to $50.08 per barrel, while West Texas Intermediate (WTI) crude settled 95 cents, or 2%, lower at $47.02 per barrel.
Both benchmarks slid nearly 3% on Monday, partly erasing recent gains driven by the rollout of COVID-19 vaccines, seen as key to allowing a return to normal life.
The latest rally culminated in Brent hitting $52.48, its highest since March, on Friday. Prices have then come down amid concerns about the virus spreading. Some see potential for prices to fall further.
Russian Deputy Prime Minister Alexander Novak on Monday said the rise in output should not result in a glut.
Reference: Reuters
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