Oil prices fell around 2% in early trade on Tuesday on worries that new clampdowns on businesses to stem surging coronavirus cases in California and other U.S. states could threaten the nascent recovery in fuel demand.
U.S. West Texas Intermediate (WTI) crude CLc1 futures slid 84 cents, or 2.1%, to $39.26 a barrel at 0138 GMT, while Brent crude LCOc1 futures fell 77 cents or 1.8% to $41.95 a barrel.
Both benchmark contracts lost just over 1% on Monday.
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