WTI crude oil is beginning the brand new trading week on a bearish note, with prices easing over mounting worries about the new, highly contagious strain of coronavirus spreading across the UK, which has forced the government to impose tighter restrictions. At the time of writing, WTI crude oil is trading at around $47.79 per barrel.

The optimism driven by the vaccine rollout came to a halt early on Monday after the British government imposed more severe lockdowns across London and other parts of the country. A ban on travel from the UK to other European countries also raised fears of fuel demand weakening once again, exerting downward pressure on crude oil prices.

Even as Brexit negotiations remain ongoing, UK PM Boris Johnson and his team now have to hold emergency meetings to decide on the response to this new, recently detected strain of coronavirus that is spreading more rampantly. On the agenda are issues like international travel, as well as the movement of freight across the borders – both of which can have a severe impact on oil demand.

Crude oil prices are weakening as markets focus on the impact of this news, and how it can force Europe also to go into tighter lockdowns towards the end of the year. Even progress on the coronavirus relief package in the US has failed to support prices as the negative sentiment about falling demand dominates in oil markets.