Picture used for illustrative purpose. File

Gulf Today Report 

Oil slumped on Tuesday as Europe tightens restrictions and prediction for slow demand next year overshadows the rollout of the vaccine.

US West Texas Intermediate (WTI) crude futures fell 36 cents, or 0.8%, to $46.63 a barrel at 05:06 GMT, while Brent crude futures fell 40 cents, or 0.8%, to $49.89 a barrel, erasing Monday's gains.

 London has asked restaurants and bars to close, Italy is likely to impose more restrictions during the Christmas holiday and Germany has shut down non-essential stores until Jan.10. 

READ MORE

Gold steadies as dollar weakens

Oil prices gain on hope for a vaccine-led economic revival

UAE and Israel discuss cooperation in infrastructure, transportation fields

In a note, ANZ analysts said: "While the market has been buoyed by the rollout of COVID-19 vaccines, a path towards normalisation of demand remains a difficult one."

On Monday, OPEC cut down its prediction for oil demand in 2021 by 350,000 barrels per day.

However, a rapid rollout of the vaccine could upturn the forecast.