Oil retreated as investors assessed the state of the demand recovery in different parts of the world.
Futures in New York fell as much as 2.4% on Tuesday, pulling back after a rally that’s seen prices rise more than 30% so far this year. Though there are indications of growing demand in some parts of the world, other regions -- notably Europe -- are lagging. Road-fuel use is picking up in India and the U.S., while Italy has headed back into lockdown. Meanwhile, Europe’s health ministers are discussing the future of AstraZeneca Plc’s coronavirus vaccine.
“A lot of demand hopes were priced into the market,” said John Kilduff, a partner at Again Capital LLC. “The renewed Covid restrictions in Europe are of particular concern, as it’s going the completely opposite direction that we thought we were all going at this point.”
- West Texas Intermediate for April delivery slid $1.33 to $64.06 a barrel at 10:04 a.m. in New York
- Brent for May settlement fell $1.21 to $67.67 a barrel
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