2021.03.1819:11:00UTC+00Crude Oil Futures Settle Sharply Lower On Demand Concerns

Crude oil prices declined sharply on Thursday amid concerns about outlook for energy demand due to uncertainty about the pace of economic recovery following a slowdown in vaccine rollout in European countries.

Reports showing a surge in coronavirus cases in several countries in Europe and fears of fresh lockdown measures raised concerns about energy demand.

Rising tensions between the U.S. and Russia which could result in the latter increasing its oil output also weighed on prices.

West Texas Intermediate Crude oil futures for April ended down $4.60 or about 7.1% at $60.00 a barrel, the lowest close since early March.

Brent crude futures were down 5.32 or nearly 8% at $62.68 a barrel a little while ago.

The latest report from the International Energy Agency that said it will take at lease a couple of years for energy demand to climb to the pre-pandemic levels weighed on the commodity.

Data from the Energy Information Administration which showed crude inventories in the U.S. were up nearly 2.4 million barrels last week contributed as well to the fall in oil prices.