Crude oil price falls below $60 amid fresh lockdown in Europe

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.

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.

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.