Oil price drops again as new restrictions imposed in Europe

Renewed restrictions in Europe and the United States to combat the coronavirus have slowed down the pace of fuel demand recovery, offsetting a rebound in Asian economies where consumption has almost returned to pre-COVID levels.

U.S. West Texas Intermediate (WTI) crude futures fell 60 cents, or 1.5%, to $39.69 a barrel, while Brent crude futures fell 54 cents, or 1.3%, to $41.86 a barrel.

As the second wave of the virus hit many Western countries, governments imposed new lockdowns, closing restaurants and bars and banning gatherings. But the measures were not as strict as during the first wave.

France, the United Kingdom, Spain and Poland were under the strictest lockdowns in Europe, according to the Oxford stringency index that assesses indicators such as school and workplace closures, and travel bans.

As a result, traffic in London, Paris and Madrid sharply fell in November after a peak in October, according to the data provided to Reuters by location technology company TomTom, that covered mobility until Sunday evening.

via Reuters, Business World