Crude oil prices dropped below $60 on Tuesday after some European countries imposed fresh lockdowns to curb the spread of COVID-19.
It is anticipated that fresh lockdowns and slow vaccine rollout will weaken recovering crude oil demand.
The US West Texas Intermediate (WTI) crude futures declined by 4.04 percent to $59.07 a barrel as of 11:45am, while the Brent crude futures slumped by 4.04 percent to $62.01 per barrel.
Angela Merkel, the German chancellor, announced on Monday that a five-day lockdown will be imposed over the Easter holiday after a new strain of the coronavirus was discovered in the country.
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France has also imposed new business and travel restrictions in Paris for at least the remainder of March.
Countries across Europe are trying to avoid a third wave of COVID-19 infections.
Analysts say the lockdowns, if widely imposed across the EU, may dampen crude oil demand and worsen the supply glut in the market.
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The Organisation of Petroleum Exporting Countries (OPEC) agreed on voluntary supply cuts to the market in a bid to mop up the excess supply and shore up prices.
Meanwhile, Nigeria’s Bonny Light crude was priced at $62.91 per barrel, while both the Brass River and Qua Iboe were sold at $62.98 per barrel.
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