Crude Oil Declines Amid Surge in Oil Inventories and COVID-19 Vaccine Concerns

Crude oil extended its decline to three consecutive days on Tuesday as data shows US crude oil inventories rose more than expected in the week ended March 5, 2021, and the news that European nations are halting COVID-19 vaccinations due to blood clots.

Brent crude oil, against which Nigerian oil is priced, declined from $71.34 a barrel attained on Monday, March 8, 2021, to $67.80 per barrel on Tuesday at 1:32 pm Nigerian time.

This was after authorities in Germany, France and other European nations suspended AstraZeneca COVID-19 injections following reports of possible side effects, even though World Health Organisation said there was no verified link to the vaccine.

Presently, oil traders are concerned that suspension of the COVID-19 vaccine could slow down global oil demand and economic recovery at large.

Also, the fact that US oil inventories rose by 12.8 million barrels in the week ended March 5, against experts projection of less than one million barrels equally weigh on the oil market.