Oil tumbles as new Covid-19 virus strain revives demand worries

Oil prices tumbled on Monday as a fast-spreading new coronavirus strain that has shut down much of Britain and led to tighter restrictions in Europe sparked worries about a slower recovery in fuel demand.

Brent crude was down $2.23, or 4.3%, to $50.03 a barrel by 1308 GMT while U.S. West Texas Intermediate (WTI) crude was down $2.10, or 4.3%, to $47.00 a barrel.

Both contracts had fallen more than $3 earlier in the session, their biggest daily drop in 6 months.

“Reports of a new strain of the coronavirus has weighed on risk sentiment and oil. New mobility restrictions across Europe are also not helping as European oil demand will suffer,” said UBS oil analyst Giovanni Staunovo.