Oil prices fell Monday after a new form of coronavirus discovered in the UK triggered new travel restrictions across Europe and concerns that there will be more lockdowns worldwide.
Brent crude oil, the international benchmark, fell 2.6% to $ 50.91 a barrel. Futures pegged to West Texas Intermediate, the leading US oil gauge, fell 2.8% to $ 47.74 a barrel.
While prices rebounded a bit from the day’s lows, the falls were the strongest since Nov. 6, breaking out five sessions of winning streaks for both Brent and WTI.
Oil demand is likely to take another hit after a number of countries banned travelers from the UK on Sunday to curb the spread of a highly contagious new strain of Covid-19 that has surfaced in England. The UK government said the new species appeared to spread 70% faster than previous mutations, and it imposed stricter restrictions on parts of the country, including London.
“The new variant of the virus and new travel restrictions have added to the concerns,” said Norbert Rücker, head of commodities research at Julius Baer. “The way back to normal has its bumps and this seems to be the last.”