Oil drops as COVID-19 vaccine halt threatens demand | Reuters

Oil drops as COVID-19 vaccine halt threatens demand | Reuters

Oil prices fell for a third day on Tuesday, as Germany, France and other European states suspended the use of a major coronavirus vaccine, threatening the recovery of fuel demand.

Brent crude fell 49 cents to settle at $68.39 a barrel, while U.S. crude dropped 59 cents to end at $64.80 a barrel.

Earlier this month, Brent reached its highest since early 2020, while U.S. crude hit a 2018 high.

Germany, France and Italy said they would suspend use of the Oxford/AstraZeneca COVID-19 vaccine after reports about possible serious side effects, although the World Health Organization said there was no established link to the vaccine.

Europe’s medicines watchdog said the benefits of the AstraZeneca vaccine outweigh its risks. Investors are worried the slow pace of vaccinations in the European Union could hurt economic recovery and fuel demand.