By Adedapo Adesanya
Oil prices fell for the third day in a row on Tuesday, leaving the international crude benchmark, Brent, falling by 39 cents or 0.57 per cent to $68.50 per barrel.
Also, the price of the United States crude benchmark, the West Texas Intermediate (WTI), went down by 0.69 per cent or 45 cents to sell at $64.90 per barrel.
The prices of the major oil thresholds were depressed yesterday by third wave of coronavirus infections in Europe and slowing vaccine rollouts in the region.
Some major economies in Europe are headed towards a third wave of COVID-19 infections and new restrictions. Italy has announced in recent days a new nationwide lockdown through Easter weekend, while Germany admitted that it was in a third wave of rising cases.
Germany, France and Italy on Tuesday became the latest European countries to announce they would suspend the use of the Oxford/AstraZeneca COVID-19 vaccine after reports about possible serious side effects, although the World Health Organization (WHO) said there was no established link to the vaccine.
The suspension of vaccinations adds to worries in Europe, a move that will further affect vaccination across the continent, which was lagging behind compared to other countries.
Slower vaccinations, especially in Western Europe, could delay a much-needed airline travel rebound as summer approaches so that global oil demand could rebound.
Prices had been heavily impacted by the COVID-19 pandemic over the last twelve months but had recovered to levels prior to the global health crisis. However, the increase in prices is capped as slow vaccination rollouts in most countries.
Also adding to the negative environment is indications that crude inventories are rising as refineries have yet to recover fully from a mid-February deep freeze in Texas that halted their operations.
Data from the American Petroleum Institute (API) on Tuesday showed crude stockpiles in the United States fell by about one million barrels last week.
Ahead of the official data forecast from the Energy Information Administration (EIA) on Wednesday, analysts forecast a crude build of about 3 million barrels in a fourth straight weekly rise.
The market was also affected by a stronger US Dollar which weighed heavy against other currencies. Oil prices are priced in the greenback and when it is stronger, it makes the commodity for holders of other currencies.
Modupe Gbadeyanka