US Oil Prices Fall Below $60 As European Lockdowns Hit Demand

US Oil Prices Fall Below $60 As European Lockdowns Hit Demand

Global oil prices tumbled Tuesday, pulling U.S. crude below the $60 mark, as trades reacted to fresh lockdown orders in Europe that could delay the return of energy demand over the second half of the year.

Germany's Chancellor, Angel Merkel, ordered the new lockdowns amid a renewed spike in new infections in Europe's largest economy and the European Union's sluggish vaccine rollout. Germany will undergo a hard five-day lockdown over the Easter break, she told the nation late Monday, and won't emerge from its broader business and travel restrictions until at least April 18.

The move follows last week's decision by France's President, Emmanuel Macron, to issue new business and travel restrictions for the great Paris region, adding to previous orders that now have some 21 million citizens under restrictive measures for at least the remainder of the month.

U.S. drillers, meanwhile, are returning to full capacity following the February winter storms that knocked out installations in Texas and the Southwest, with data from Baker Hughes on Friday indicating a 9 new rigs came online last week, taking the overall total to 318.

With more crude pumping from the United States, and the U.S. dollar continuing to rise against its global peers as investors