Oil prices resume drop as Covid pandemic and supply concerns weigh

Oil dropped towards $68 a barrel on Tuesday, extending the previous session’s steep slide, pressured by concern that rising COVID-19 infections could weaken demand again just when OPEC+ is increasing supply.

Monday’s selloff had pushed oil to a two-month low and hit other riskier assets. While equities avoided a new selloff on Tuesday, U.S. Treasury and German bond yields also slipped as a reminder that investors remained worried.

“As things stand, it is hard to see prices staging a comeback unless virus jitters are brought back under control,” said Stephen Brennock of oil broker PVM.

“The market is clearly unsettled about the demand outlook.”