On Tuesday, oil quotations declined on deteriorating demand outlook due to continued high incidence of COVID-19 and slow vaccinations, Interfax reports.
New outbreaks in China endanger oil demand in the country, and Chinese officials are urging people who usually travel at this time of year to stop travelling to prevent the spread of the coronavirus.
March futures for Brent fell by $0.31 (0.55%) on the London ICE Futures exchange to $55.57 per barrel. During trading on Monday, Brent rose in price by $0.47 (0.9%), to $55.88 per barrel.
March futures for WTI fell in price at electronic trading on the New York Mercantile Exchange (NYMEX) by $0.34 (0.64%) to $52.43 per barrel. The contract rose by $0.5 (1%) to $52.77 per barrel during the previous session.
“Traders are trying to assess how restrictions will affect oil consumption,” said Axi analyst Stephen Innes. “In the meantime, we see signals of a reduction in supply in the oil market, and this is timely support to prices in the face of reduced demand.”
At the same time, it became known earlier that Iraq planned to cut production in January-February to compensate for the violation of OPEC+ quotas.