Prices of oil crashed by over 6% on Tuesday even as major European countries such as Italy, France, and Germany extended or declared new lockdowns in their respective states.
Reports say Brent Crude oil slumped by 6.65% to trade at $60.32 per barrel as at 9:55 pm on Tuesday as bearish sentiment returns to the market after Covid-related restrictions in Europe increased.
The crash in global oil prices is attributed to the revived fear in the resurgence of the covid-19 in major countries in Europe, prompting concerns about mobility and oil demands in coming weeks as they begin fresh rounds of lockdowns.
A stronger US dollar also affected oil prices on Tuesday, as investors flocked to haven asset classes such as the US Treasuries and avoided riskier assets such as the crude market.
Brent crude dropped by 5.93% to close at $60.79, Natural gas ($2.517), WTI Crude ($57.39), and Bonny Light at $62.91.