Oil price drops as new coronavirus variant revives demand fears

Brent crude was down US60 cents, or 1.2%, at $50.32 a barrel by 11:58 a.m. EST (1558 GMT), while U.S. West Texas Intermediate (WTI) crude fell 72 cents, or 1.5%, to $47.25. Both benchmarks slid nearly 3% on Monday, partly erasing recent gains driven by the rollout of COVID-19 vaccines, seen as key to allowing a return to normal life.

NEW YORK: Oil price dropped towards US$50 a barrel on Tuesday, adding to losses from the previous session, as a mutant variant of the coronavirus in Britain revived concerns over demand recovery.

Detection of the new variant prompted several countries to close their borders to Britain. The BBC cited France's Europe Minister as saying that the two countries would announce a deal to restart freight by Wednesday.