Oil holds near $47 as investors weigh lockdowns against vaccine

Oil was little changed in early Asian trading as investors weighed a bleak near-term outlook for fuel demand due to tightening pandemic restrictions against the distribution of a Covid-19 vaccine in some regions.

Futures traded near $47 a barrel after climbing 0.9% on Monday. New York is heading toward a second full lockdown after a surge in infections, while London will be placed under England’s toughest coronavirus rules from Wednesday. The tighter restrictions come as the U.S. starts delivering its first vaccine doses.

The Organization of Petroleum Countries, meanwhile, cut its projections for oil demand in the first quarter of 2021 as the group and its allies prepare to start returning some crude supply to the market from January.