Oil prices hit a five-month low on Monday following fresh virus-induced lockdowns.
More economies have tightened social restrictions including the UK, France and Germany as they battle rising infection rates.
The fear is that the new lockdown measures will further dent economic growth and demand for oil will slump.
Commodities and share markets are also on edge with the US election looming this week.
In Asia trading hours, the price of Brent crude fell to a low of $35.74 per barrel, a level not seen since late May.
It later recovered somewhat in London trading, hitting $37.86 by mid-morning.
The price of Brent, the main benchmark for oil prices, is down 45% from the start of the year. Read more >>