Oil prices drop 4% as new lockdowns undermine hopes for economic recovery | Reuters

Oil prices drop 4% as new lockdowns undermine hopes for economic recovery | Reuters

Oil prices fell 4% per barrel on Thursday, extending a string of market weakness on renewed lockdowns in Europe and Asia to head off a rising coronavirus infection rate.

Prices lost much of the gains from the previous session that followed news of a large container ship running aground in the Suez Canal. The ship has still not been freed, but for now the market was shrugging off the blockage, as only a small percentage of the world’s crude is shipped through the canal.

Brent crude fell $2.46, or 3.8%, to settle at $61.95 a barrel. U.S. West Texas Intermediate (WTI) crude fell $2.62, or 4.3%, to settle at $58.56 a barrel.

Countries in Europe are renewing restrictions to curb COVID-19 cases, which will reduce demand from the region. Germany, the largest European economy, saw its biggest increase in coronavirus cases since January.