2021.03.2519:13:00UTC+00Crude Oil Futures Settle Sharply Lower On Demand Worries

Crude oil prices drifted lower on Thursday weighed down by worries about outlook for energy demand due to extension of lockdown measures in several countries.

Traders largely shrugged off the Suez Canal disruptions and signs of stronger gasoline demand in the U.S. At least 150 vessels were said to be waiting to use the Suez Canal after a skyscraper-sized cargo ship wedged across the vital waterway, according to canal service provider Leth Agencies.

West Texas Intermediate Crude oil futures for May ended lower by $2.62 or 4.3% at $58.56 a barrel. Crude futures had surged up 5.9% on Wednesday, after having plunged more than 6% a session earlier.

Brent crude futures were down $2.68 or 4.2% at $61.73 a barrel a little while ago.

Several countries in Europe, including Germany, France and Italy are seeing spikes in coronavirus cases and are reportedly extending lockdown measures. Also, there are growing concerns about vaccine delays causing a dent in fuel demand.

A stronger dollar contributed as well to the decline in oil prices today.