SULAIMANI (ESTA) — Oil prices edged lower on Tuesday, adding losses from the previous session that came as California tightened its pandemic lockdown through Christmas and coronavirus cases continued to surge in the United States and Europe.
Brent crude futures fell 33 cents, or 0.68%, to $48.46 a barrel at 0643 GMT, while U.S. West Texas Intermediate (WTI) crude futures fell 24 cents or 0.52%, to $45.52 a barrel.
Both benchmark contracts lost around 1% on Monday.
Globally, a sharp rise in coronavirus cases has led to a string of renewed lockdowns, including strict measures in the U.S. state of California as well as Germany and South Korea.
“The pandemic situation is continuing to be very disruptive in quite a few places in the U.S. and parts of Europe. That’s impacting sentiment on demand near term,” said Lachlan Shaw, National Australia Bank’s head of commodity research.
California on Monday required most of the state to close shop and stay at home under a new order which will last at least three weeks.
“California, one of the U.S. largest road fuel demand states, will be in lockdown lite through what is bound to be a Christmas lite for the oil markets,” said Stephen Innes, chief market strategist at Axi.
Following last week’s rally in oil prices on the back of vaccine rollout plans and an agreement by the Organization of the Petroleum Exporting Countries and allies, together called OPEC+, to hold back supply increases, analysts said they were closely watching U.S. lawmakers’ efforts to approve a new economic stimulus package.
(Esta Media Network/Reuters)
