Oil falls on worries about European COVID-19 issues hitting demand

Oil prices dropped 1% on Tuesday on worries that fresh pandemic restrictions and slow vaccine rollouts in Europe will offset fuel demand recovery and oil supply. 

U.S. West Texas Intermediate crude futures for May contract lost 1%, or 62 cents, at $60.94 per barrel. The April contract expired on Monday, up 13 cents from Friday, at $61.55.

Brent crude futures for May delivery fell 1.1%, or 68 cents, at $63.94 per barrel. IEA slashed its forecast for crude demand in 2021 by 2.5 million bpd.

Europe’s biggest oil consumer, Germany is expected to extend lockdowns through April to contain a third wave of coronavirus cases.

U.S. crude inventories data from the API will be released later in the day. Analysts expect U.S. crude stocks dropped by 900,000 barrels in the week ended March 19.