SULAIMANI (ESTA) — Oil prices fell on Tuesday as the rapid spread of a new strain of the novel coronavirus in the United Kingdom prompted several countries to close their borders to British travelers and freight.
Brent crude futures fell 87 cents to $50.04 a barrel at 0557 GMT, while U.S. West Texas Intermediate (WTI) crude futures dropped $1.36 to $47.74 a barrel.
Both benchmark contracts slid nearly 3% on Monday, partly erasing recent strong gains on the back of the rollout of COVID-19 vaccines, seen as key to easing mobility restrictions.
After the UK government warned that a new variant of the virus seemed to be spreading much faster than previous kinds, India, Pakistan, Russia, Jordan and Hong Kong joined European countries in suspending travel from Britain.
Saud Arabia, Kuwait and Oman closed their borders completely.
“The nightmare before Christmas scenario has set in, with a combination of the ‘mutant virus’ compounded by Brexit angst,” said Stephen Innes, chief market strategist at Axi, referring to doubts over whether UK Prime Minister Boris Johnson can secure a post-Brexit trade deal with the European Union.
(Esta Media Network/Reuters)
