WTI crude oil prices continue to trade weaker early on Tuesday, with prices slipping since the previous session on the back of rising concerns about the economic impact of the latest strain of coronavirus reported by the UK. At the time of writing, WTI crude oil is trading at around $47.65 per barrel.

On Monday, crude oil lost almost 3% of its value as several countries across Europe and other parts of the world banned international travel of passengers and freight from the UK. This raised fears in oil markets about renewed weakness in demand, with traders anticipating more restrictions that could send prices lower.

In addition to fears about weakening demand, crude oil prices are also trading bearish as the market was overbought over recent sessions due to vaccine optimism. Agencies and analysts had previously cautioned that the rollout of a vaccine could take longer to impact oil demand positively, but traders’ hopes had sent oil prices to multi-month highs too quickly.

Crude oil prices have also been falling after the US dollar gained back some of its strength as a safe haven currency amid the current risk-off mood in the markets. When the US dollar strengthens, oil becomes more expensive for holders of other currencies to purchase.