U.S. oil prices slump over 5% on vaccine efficacy worries | Reuters

U.S. oil prices slump over 5% on vaccine efficacy worries | Reuters

Oil prices tumbled on Tuesday, with U.S. crude futures falling by more than 5%, after Moderna's chief cast doubt on the efficacy of COVID-19 vaccines against the Omicron coronavirus variant, spooking financial markets and heightening worries about oil demand.

The head of drugmaker Moderna Inc (MRNA.O) told the Financial Times that COVID-19 vaccines are unlikely to be as effective against the Omicron variant of the coronavirus as they have been against the Delta variant. read more

Brent crude futures fell $2.87, or 3.9%, to settle at $70.57 a barrel, after hitting an intraday low of $70.22, their lowest since August.

U.S. West Texas Intermediate (WTI) crude futures ended $3.77, or 5.4%, lower at $66.18 a barrel. The benchmark dropped to a session low of $64.43, also its lowest since August.

This month, oil prices have dropped by the most since March 2020, the start of widespread lockdowns because of the pandemic. Brent fell this month by 16.4%, while WTI fell 20.8%.