Oli Tumbles to $60 On Concerns Over Vaccine Rollout

According to the international news agency, the front-month Brent spread flipped into a small contango for the first time since January.

Contango is where the front-month contracts are cheaper than future months, and could encourage traders to put oil into storage.

The Head of Oil Markets at Rystad Energy, Bjornar Tonhaugen, was quoted as saying, “The road to oil demand recovery appears to be full of obstacles as the world continues to tackle the COVID-19 pandemic”.

“Oil prices are dropping again on Tuesday, proving that last week’s correction was not deep enough and that the market had been trading lately with an excessively bullish sentiment, overlooking the pandemic’s risk”He said.

Extended lockdowns in Europe are being driven by the threat of a third wave, with a new variant of the coronavirus on the continent.