Oil prices fell more than 4% today, hit by concerns over new pandemic curbs and slow vaccine rollouts in Europe as well as a stronger dollar.
Brent crude futures were down by $2.69, or 4.2%, to $61.93 a barrel this afternoon, having earlier hit a low of $61.41.
West Texas Intermediate (WTI) US crude futures fell by $2.47, or %4, to $59.06, after falling to as low as $58.47.
Both contracts traded near lows not seen since February 12.
"Continental Europe is tightening the coronavirus measures and thereby further restricting mobility," Commerzbank analysts said. "This is likely to have a correspondingly negative impact on oil demand."
Extended lockdowns are being driven by the threat of a third wave of infections, with a new variant of the coronavirus on the continent.
Germany, Europe's biggest oil consumer, is extending its lockdown until April 18 and asked citizens to stay home to try to stop a third wave of the Covid-19 pandemic.
Nearly a third of France entered a month-long lockdown on Saturday following a jump in Covid-19 cases in Paris and parts of northern France.
A stronger US dollar also weighed on prices. As oil in priced in US dollars, a stronger greenback makes oil more expensive for holders of other currencies.
Physical crude markets are indicating that demand is lower, much more so than the futures market.
