Global oil prices slipped on Thursday following another round of COVID-19 restrictions in Europe which dragged demand, according to Reuters.

  • Brent crude fell $1.19 or 1.8% to $63.22 a barrel at 1148 GMT, while U.S. West Texas Intermediate (WTI) crude slid by $1.35 or 2.2% to $59.83 a barrel.
  • European demand is currently weak due to a new round of lockdowns, even as supply issues may abound from the blockage of the Suez Canal.
  • Brent and WTI contracts jumped 6% on Wednesday after a ship ran aground in the Suez Canal, one of the most important oil shipping routes.
  • Analysts say oil markets are unlikely to renew their upward momentum until the next meeting of the Organization of the Petroleum Exporting Countries and its partners in April.
  • Oil prices were also dragged by a strong dollar. The greenback hit a new four-month high against the euro, as the U.S. pandemic response outpaced that of Europe.