2021.03.2210:05:00UTC+00Oil Resumes Decline On Demand Concerns

Oil prices fell on Monday as rising Covid-19 cases and fresh lockdowns in European countries raised concerns over recovery in fuel demand.

A rising dollar and surging bond yields also reduced the appeal of commodities priced in the currency.

Brent crude for May settlement slipped 0.4 percent to $64.28 per barrel, while West Texas Intermediate crude oil futures were down half a percent at $61.13.

Short-term demand concerns linger as continental Europe braces for a third wave of infections.

German Chancellor Angela Merkel said it was likely that the country would now need to apply an "emergency brake" and re-impose lockdown measures. France, Poland and other nations are also reintroducing restrictions.

The U.S. dollar held near a four-month high after Turkish President Recep Tayyip Erdogan ousted central bank Chief Naci Agbal for hiking interest rate to contain double-digit inflation.

The move came two days after the Central Bank of the Republic of Turkey hiked its benchmark policy rate by 200 basis points to 19 percent to tame its high inflation rate.

In a statement on Sunday, the central bank said it "will continue to use the monetary policy tools effectively in line with its main objective of achieving a permanent fall in inflation".