Oil prices fall amid worries over new coronavirus strain

* New coronavirus strain vanishes rosy expectations for 2021
* U.K. imposes tougher virus curbs, neighbour countries shut
doors
* U.S. rig count rises to highest since May -Baker Hughes

By Yuka Obayashi
TOKYO, Dec 21 (Reuters) - Oil prices slid in early trade on
Monday as a fast-spreading new coronavirus strain in the United
Kingdom raised concerns that tighter restrictions there and in
other European countries could stall a recovery in the global
economy and its need for fuel.
Brent crude LCOc1 dropped 97 cents, or 1.9%, to $51.29 a
barrel by 0103 GMT after rising 1.5% and touching its highest
since March last Friday.
U.S. West Texas Intermediate (WTI) crude CLc1 was down 83
cents, or 1.7%, to $48.27 a barrel after also climbing 1.5% on
Friday to its highest level since February.
Monday's declines came after oil prices marked seven
straight weeks of gains last week as investors focused on the
rollout of COVID-19 vaccines.
"A new variant of the coronavirus in Britain and tighter
travel restrictions in Europe sparked fears over slower economic
recovery, prompting investors to unwind long positions," said
Kazuhiko Saito, chief analyst at commodities broker Fujitomi Co.
"The oil market has been on a bull trend in the past month
or so, ignoring negative factors, amid an optimism that a
widening vaccine rollout would revive global growth, but
investors' rosy expectations for 2021 have suddenly vanished,"
Saito said.
British Prime Minister Boris Johnson will chair an emergency
response meeting on Monday to discuss international travel, in
particular the flow of freight in and out of Britain as COVID-19
cases surged by a record number for one day. The headache comes
as Johnson also seeks to hammer out a final accord on Brexit.
The variant, which officials say is up to 70% more
transmissible than the original, also prompted concerns about a
wider spread, forcing several European countries to begin
closing their doors to travellers from the United Kingdom.
The negative sentiment also overshadowed a weekend deal
among U.S. congressional leaders for a $900 billion coronavirus
aid package. Adding to pressure, the oil and gas rig count, an early
indicator of future output, rose by eight to 346 in the week to
Dec. 18, the highest since May, Baker Hughes BKR.N said on
Friday, as producers keep returning to the wellpad with crude
prices trading above $45 a barrel since late November.