MELBOURNE (Reuters) – U.S. oil prices fell in early trade on Tuesday as concerns over demand in the near term in coronavirus-hit economies in Europe and the United States returned to haunt the market after an overnight surge on progress towards a COVID-19 vaccine.
U.S. West Texas Intermediate (WTI) crude futures dropped 81 cents, or 2%, to $39.48 a barrel at 0029 GMT, having jumped 8% on Monday, its biggest daily gain in more than five months, after drugmakers Pfizer and BioNTech said an experimental COVID-19 treatment was more than 90% effective based on initial trial results.
“A viable vaccine is unequivocally game-changing for oil – a market where half of demand comes from moving people and things around,” JP Morgan said in a note
