Oil prices fell on Tuesday, deepening losses for the third straight day, diving near the 3-week low hit yesterday, due to lingering fears over the global demand for fuel and increasing market surplus, due to the rapid spread of the Omicron variant.

US crude fell 0.9% to $68.59 a barrel, after opening at $69.19, and hit a high at $69.75, and Brent crude fell 1.1% to $71.26 a barrel, after opening at $72.09, and hit a high at $72.50.

The US crude lost 1.6% yesterday, and hit a 3-week low at $66.15, and Brent fell 1.2%, and hit the lowest level since December 3 at $69.30, due to concerns about global demand.

Concerns are still lingering in the energy markets due to the rapid spread of the Omicron Covid variant, which forced some global governments to consider re-imposing lockdown restrictions that are expected to impact fuel demand.

Experts expect the UK to re-impose restrictions sometime after Boxing Day December 26, especially after the daily infections rose to record levels.

British Prime Minister Boris Johnson said on Monday the he would tighten restrictions to slowdown the spread of the Omicron variant if needed, which comes after the Netherlands went into lockdown, with more lockdown restrictions looming before the Christmas and New Year holidays in many European countries.

Omicron cases are doubling rapidly in the US and Europe, and in 1.5 to 3 days in London and many other parts of the world, which has renewed concerns about the impact on the global economic recovery.