<p>Oil prices dropped almost 2% on Tuesday to below $50 a barrel, adding to losses from the previous session, as a new coronavirus strain in the United Kingdom revived concerns over demand recovery.</p>.<p>The detection of the new strain prompted several countries to close their borders to Britain, although a British minister said the UK and France are working to reopen one of Europe's most important trade routes.</p>.<p>Brent crude was down 72 cents, or 1.4% to $50.19 a barrel at 0915 GMT, while U.S. West Texas Intermediate (WTI) crude fell 76 cents, or 1.6%, to $47.21.</p>.<p>Both benchmarks slid nearly 3% on Monday, partly erasing recent gains driven by the rollout of COVID-19 vaccines seen as key to allowing a return to normal life.</p>.<p>"In the battle between immediate negative concerns and future optimism, the former is now fighting back," said Tamas Varga of oil broker PVM.</p>.<p><strong>Also read: <a href="https://www.deccanherald.com/business/business-news/monday-meltdown-covid-19-scare-cracks-equities-929966.html" target="_blank">Monday meltdown: Covid-19 scare cracks equities</a></strong></p>.<p>The latest rally culminated in Brent hitting $52.48, its highest since March, on Friday. Some see potential for prices to fall further.</p>.<p>"The environment remains decidedly risk-averse," said Jeffrey Halley of brokerage OANDA. "Given the scale of oil's two-month rally, a deeper correction cannot be ruled out."</p>.<p>Oil gained support from the U.S. Congress approving a $892 billion coronavirus aid package after months of inaction.</p>.<p>In focus will be the latest U.S. oil inventory reports, expected to show crude stocks fell by 3.3 million barrels. The American Petroleum Institute's report is due at 2130 GMT.</p>.<p>The Organization of the Petroleum Exporting Countries and allies, known as OPEC+, are set to boost output by 500,000 barrels per day in January. There is no sign yet of any wavering induced by the price drop.</p>.<p>Russian Deputy Prime Minister Alexander Novak on Monday said the rise in output should not result in a glut. </p>
<p>Oil prices dropped almost 2% on Tuesday to below $50 a barrel, adding to losses from the previous session, as a new coronavirus strain in the United Kingdom revived concerns over demand recovery.</p>.<p>The detection of the new strain prompted several countries to close their borders to Britain, although a British minister said the UK and France are working to reopen one of Europe's most important trade routes.</p>.<p>Brent crude was down 72 cents, or 1.4% to $50.19 a barrel at 0915 GMT, while U.S. West Texas Intermediate (WTI) crude fell 76 cents, or 1.6%, to $47.21.</p>.<p>Both benchmarks slid nearly 3% on Monday, partly erasing recent gains driven by the rollout of COVID-19 vaccines seen as key to allowing a return to normal life.</p>.<p>"In the battle between immediate negative concerns and future optimism, the former is now fighting back," said Tamas Varga of oil broker PVM.</p>.<p><strong>Also read: <a href="https://www.deccanherald.com/business/business-news/monday-meltdown-covid-19-scare-cracks-equities-929966.html" target="_blank">Monday meltdown: Covid-19 scare cracks equities</a></strong></p>.<p>The latest rally culminated in Brent hitting $52.48, its highest since March, on Friday. Some see potential for prices to fall further.</p>.<p>"The environment remains decidedly risk-averse," said Jeffrey Halley of brokerage OANDA. "Given the scale of oil's two-month rally, a deeper correction cannot be ruled out."</p>.<p>Oil gained support from the U.S. Congress approving a $892 billion coronavirus aid package after months of inaction.</p>.<p>In focus will be the latest U.S. oil inventory reports, expected to show crude stocks fell by 3.3 million barrels. The American Petroleum Institute's report is due at 2130 GMT.</p>.<p>The Organization of the Petroleum Exporting Countries and allies, known as OPEC+, are set to boost output by 500,000 barrels per day in January. There is no sign yet of any wavering induced by the price drop.</p>.<p>Russian Deputy Prime Minister Alexander Novak on Monday said the rise in output should not result in a glut. </p>