Oil prices dropped on Tuesday, amid concerns over the pace of recovery in global crude demand as COVID-19 infections mounted globally. In China, authorities have ordered citizens to avoid travel during the Lunar New Year holidays that will start in mid-February. Meantime, European nations have set tough curbs to reduce the spread of the virus. Sentiment was also rattled by uncertainty about a quick approval of new US fiscal aid, as Washington was still trying to convince the Republicans of the need for large stimulus. Traders overlooked news that crude oil imports in India rose to the highest in over two years, boosted by an easing in social restrictions. On the supply side, Iraq is cutting its oil output to compensate for excess production over its OPEC+ output quota. Meanwhile, Libya’s crude exports may dwindle after the Petroleum Facilities Guard militia started a strike. At around 05:30 AM GMT, WTI crude fell 0.7% to $52.41 a barrel and Brent oil declined 0.6% and $55.51 a barrel.