Oil falls on new restrictions across Europe

Gulf Today Report 

Oil prices declined on Tuesday by 1 per cent on worries about new pandemic restrictions and the slow pace of vaccine roll out will slow recovery in fuel demand.

US West Texas Intermediate (WTI) crude futures for May delivery fell 62 cents, or 1%, to $60.94 a barrel at 01:49 GMT while Brent crude futures for May dropped by 68 cents, or 1.1% to $63.94, erasing a 9 cent gain in the previous session.

Germany, Europe's biggest oil consumer would be extending restrictions into April. 

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European countries are extending their lockdowns due to the threat of a third wave following a new variant of coronavirus on the continent.

Last week, the International Energy Agency cut its forecast for crude demand in 2021 by 2.5 million barrels per day while the Energy Information Administration predicted global oil supply surpassing demand in the second half of 2021. 

"This is heightening fears that the pessimistic forecasts from both the IEA and the EIA (Energy Information Administration) recently could eventuate," ANZ Research said in a note.

Nigeria, Africa's biggest oil producer, on Monday cut its official selling prices for April-loading cargoes, suggesting that suppliers are trying to encourage sales. Angola, the continent's second-biggest producer and a key supplier to China, still has some April cargoes that remain unsold, indicating a lack of interest from Chinese refiners.