WTI crude fell more than 5% to $74.21 a barrel.

WTI crude fell more than 5% to $74.21 a barrel.Oil slumped as a new Covid-19 strain raised concerns about the outlook for demand ahead of next week’s OPEC+ meeting on output policy.

The U.K. and Singapore have curbed travel from South Africa and some neighboring countries due to the new strain, while the European Union will propose halting travel from the region.

“The new Covid variant found in South Africa is ringing fresh alarm bells,” said Vandana Hari, founder of Vanda Insights in Singapore. “I expect OPEC+ to stay the course on its tapering strategy but if the new variant emerges as a major problem in the coming days, it may end up pausing the monthly increments.”