21.12.202009:15:00UTC+00Oil Prices Plunge 5% On Demand Worries

Oil prices fell about 5 percent on Monday as a fast-spreading new coronavirus strain fueled worries about a slower recovery in fuel demand.

Benchmark Brent crude slumped $2.59, or nearly 5 percent, to $49.66 a barrel, after having risen 1.5 percent to its highest since March on Friday.

U.S. West Texas Intermediate (WTI) crude futures were down $2.49, or 5.1 percent, at $46.75, after having climbed 1.5 percent on Friday to their highest level since February.

All of London and much of southeastern England is now under strict "Tier 4" lockdown restrictions after the discovery of a new strain of the Sars-CoV-2 virus, which is said to be up to 70 percent more transmissible.

The World Health Organization said the same mutation of the Covid-19 virus has also been detected in the Netherlands, Denmark and Australia.

Canada as well as European countries, including Germany, France, Italy and the Netherlands, ordered a suspension of flights from Britain.

British Prime Minister Boris Johnson will chair an emergency response meeting later today to review the situation.

He will also hold crisis talks with senior ministers and officials amid the looming prospect of a no-deal Brexit.

An official said Brexit trade talks remain difficult with "significant differences" between the two sides.

Today's declines in oil prices come after seven weeks of gains on optimism over the rollout of coronavirus vaccines.