Oil Falling as Demand Worries Increase on The Increase in Inventories

Oil prices fell for the third session in a row on Tuesday (March 16th), as an increase in stocks in the United States exacerbated concerns about risks facing demand, with countries including Germany and France halting vaccinations to prevent Covid-19.

Brent crude fell 49 cents, equivalent to 0.7%, to $ 68.39 a barrel by 04:33 GMT, and it had fallen 0.5% on Monday. US crude fell 47 cents, or 0.7%, to $ 64.92 a barrel, after falling 0.3% in the previous session.

Germany, France and Italy intend to suspend vaccinations with the AstraZeneca vaccine, after reports of possible side effects, although the World Health Organization says there is no confirmed link with the vaccine.

These moves deepen fears that the pace of vaccination will slow in the region, delaying any economic recovery from the pandemic in one of the worst-affected areas.

The pandemic undermined demand for oil, but prices recovered to levels before the global health crisis, but the slow pace of vaccination campaigns in most countries limited the gains.

In the United States, stocks rose due to a very cold wave last month that stopped refining operations and it took some time for them to return to full capacity.