Oil drops as new coronavirus strain revives demand fears

Oil dropped towards $50 a barrel on Tuesday, adding to losses from the previous session, as a new coronavirus strain in the United Kingdom revived concerns over demand recovery.

Detection of the new strain prompted several countries to close their borders to Britain, though a British minister said the UK and France are working to reopen one of Europe’s most important trade routes.

Brent crude was down 32 cents, or 0.6%, at $50.59 a barrel by 1125 GMT, while U.S. West Texas Intermediate (WTI) crude fell 67 cents, or 1.4%, to $47.30.

Both benchmarks slid nearly 3% on Monday, partly erasing recent gains driven by the rollout of COVID-19 vaccines, seen as key to allowing a return to normal life.