Oil prices fall amid stockpiling concern

Oil prices fell on Tuesday, extending declines for a third day, as concerns about rising stockpiles in the United States added to the threat to demand posed by countries including Germany and France halting Covid-19 vaccinations.

Brent crude was down 58 cents, or 0.8 per cent , at $68.30 by 0041 GMT, having dropped 0.5 per cent on Monday. US crude was down 61 cents, or 0.9 per cent , at $64.78 a barrel, after declining 0.3 per cent in the previous session.

Germany, France and Italy plan to suspend AstraZeneca PLC Covid-19 injections after reports of possible serious side effects, although the World Health Organization said there was no established link to the vaccine.

These moves are deepening concerns over a slow pace of vaccinations in the region, which may delay any economic recovery from the pandemic in one of the hardest-hit areas.

The pandemic eviscerated demand for oil but prices have recovered to levels before the global health crisis, only to be capped as vaccination rollouts have been slow in most countries.

In the United States, stockpiles are also rising because of last month’s “big freeze” which halted refining operations that have taken time to fully return.