Oil prices decline amid demand concerns

Oil prices declined on Tuesday as demand concerns following stricter lockdowns in Europe weighed on investor sentiment, although positive reports of COVID-19 vaccine rollout continue to provide support.

The Organization of Petroleum Exporting Countries (OPEC) on Monday eased its forecast for the oil demand recovery in 2021 by 350,000 barrels per day (bpd), with the growth now estimated at 5.9 million bpd.

Meanwhile, London stepped up restrictions to stem the spread of coronavirus, while Italy said it was considering stricter restrictions over the Christmas holidays. Most stores in Germany have been ordered to remain closed until Jan. 10.

In terms of trading, international benchmark Brent crude was down 0.6% at $59.98 per barrel, at 9 am Makkah time.

WTI crude also fell 0.6% to $46.69 a barrel.