Oil falls as demand concerns trump Suez Canal disruptions | Reuters

Oil falls as demand concerns trump Suez Canal disruptions | Reuters

Oil prices fell more than 1% as fresh coronavirus lockdowns revived worries about demand for oil products, even as tug boats struggled to move a stranded container ship blocking crude oil carriers in the Suez Canal.

Brent crude futures slid 77 cents, or 1.2%, to $63.64 a barrel at 0736 GMT, after jumping 6% overnight.

U.S. West Texas Intermediate (WTI) crude futures dropped by 87 cents, or 1.4%, to $60.31 a barrel, after climbing 5.9% overnight.

Both benchmarks fell over 2% earlier in the session.

“Oil is shifting lower, and in addition to lockdown woes, the slow uptake in Chinese buying, evidence of rising Iranian exports and clear signals that the physical market was not reflecting the futures market continues to cloud the near term viewfinder,” said Stephen Innes, chief markets strategist at Axi.