Oil prices slump on renewed lockdowns

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Oil prices slumped on Tuesday on lower demand prospects for crude as Europe's biggest economy Germany said it would reimpose strict containment measures.

Jerome Powell's testimony with Janet Yellen this week will be closely watched by marketsLODON - Oil prices slumped Tuesday on lower demand prospects for crude as Europe's biggest economy Germany said it would reimpose strict containment measures and struggles along with other EU nations to roll out vaccines.

Neighbouring France should be vaccinating"morning, noon and evening", President Emmanuel Macron said as he tackles criticism that the Covid-19 immunisation drive has been too slow. Events in Europe are"hurting demand projections for crude oil", noted ThinkMarkets analyst Fawad Razaqzada."Everything else being equal it means that growth will be slower to pick up and inflationary pressures are likely to be weaker than previously thought."

It comes as markets are rattled by a sharp rise in US Treasury yields in recent weeks that have been fuelled by bets that the forecast strong bounce in economic activity this year will fan inflation and force the bank to lift interest rates before 2024, as it has indicated.

 

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