Oil drops more than 4%, on pace for third straight week of losses
Oil prices fell on Thursday as a new round of coronavirus restrictions in Europe revived worries about demand, even as tug boats struggled to move a stranded container ship blocking crude oil carriers in the Suez Canal.
Brent crude slid 3.8% to $61.95 per barrel. U.S. West Texas Intermediate (WTI) crude dropped 4.28% to settle at $58.26 per barrel.
Both contracts jumped about 6% on Wednesday after a ship ran aground in the Suez Canal, one of the world’s most important oil shipping routes. The Suez Canal Authority said on Thursday it had suspended traffic temporarily while eight tugs work to free the vessel.
Countries in Europe are renewing restrictions to curb COVID-19 cases, which will reduce demand from the region. Germany, the largest European economy, saw its biggest increase in coronavirus cases since January.
Reference: CNBC
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