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2021.01.2809:20:00UTC+00Oil Slips On Covid-19 Worries

Oil prices drifted lower on Thursday amid persistent concerns about the coronavirus pandemic.

The downside remained capped after official data showed a substantial drop in U.S. crude stockpiles in the week ended January 22.

Benchmark Brent crude slipped 0.3 percent to $55.38 a barrel, while U.S. West Texas Intermediate (WTI) crude futures were down 0.4 percent at $52.66.

Renewed worries about the surge in coronavirus cases and tighter restrictions on movement in several parts across the world continue to cause uncertainty about near-term energy demand.

China is tightening curbs ahead of the Lunar New Year peak travel season kicking off on Thursday, and the annual parliament meeting starting on March 5.

With the epidemic prevention and control work in Daxing district still in a critical phase, people entering Beijing from low-risk areas in China between Jan. 28 and March 15 have to show negative Covid-19 test results.

Elsewhere, the U.K. government has confirmed plans for a 10-day quarantine in hotels or other government-provided accommodation for anyone arriving from 22 hotspot countries, including South Africa, Portugal and all in South America.

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