UPDATE 9-Oil prices drop 4% as new lockdowns undermine hopes for economic recovery

* Prices fall as demand concerns dominate
* Traders shrug off Suez Canal incident
* Big gains unlikely until OPEC meeting on April 1 - analyst

(Updates prices, market activity, adds commentary)
By Stephanie Kelly
NEW YORK, March 25 (Reuters) - Oil prices fell 4% per barrel
on Thursday, extending a string of market weakness on renewed
lockdowns in Europe and Asia to head off a rising coronavirus
infection rate.
Prices lost much of the gains from the previous session that
followed news of a large container ship running aground in the
Suez Canal. The ship has still not been freed, but for now the
market was shrugging off the blockage, as only a small
percentage of the world's crude is shipped through the canal.
Brent crude LCOc1 fell $2.58, or 4%, to $61.83 a barrel by
12:33 p.m. EDT (1633 GMT). U.S. West Texas Intermediate (WTI)
crude CLc1 fell $2.95, or 4.8%, to $58.23 a barrel.
Countries in Europe are renewing restrictions to curb
coronavirus infections, which will reduce demand from the
region. Germany, the largest European economy, saw the biggest
increase in coronavirus cases in the country since January.
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"Germany, Italy and other areas in the eurozone are going
backwards and the demand destruction is basically overwhelming,"
said Bob Yawger, trader at Mizuho in New York.
In parts of western India, authorities ordered people
indoors as new coronavirus infections hit the highest in five
months. Vaccine distribution has been faster in the United States
than all but a few countries, but health experts are concerned
that spring break travel in the United States will spur another
outbreak.
The strong dollar also weighed on oil prices. The dollar hit
a new four-month high against the euro as the U.S. pandemic
response continued to outpace Europe's. A rising U.S. dollar
=USD makes greenback-denominated oil more expensive for
holders of other currencies. USD/
The Organization of Petroleum Exporting Countries and
allies, together called OPEC+, are expected to roll over their
current supply curbs into May at a meeting scheduled for April
1, four OPEC+ sources told Reuters. The group recently declined
to increase supply on worries that COVID-19 infections would
rise again. U.S. crude inventories rose on Wednesday to their highest
since December, adding to global supplies.
The market was also under pressure as producers faced
difficulties selling to Asia, especially China. Asian buyers
instead took cheaper oil from storage while refinery maintenance
has reduced demand, industry sources said. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Top exporters of crude and products via Suez Canal https://tmsnrt.rs/3lXwoTL
Top importers of crude and products via Suez Canal https://tmsnrt.rs/3tR2ROc
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