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.
California’s governor on Monday ordered bars to shut and restaurants, movie theatres, zoos and museums in the country’s most populous state to cease indoor operations as coronavirus cases and hospitalizations soared.
The state’s two largest school districts, in Los Angeles and San Diego, also said they would teach only online when school resumes in August.
California’s moves follow the recent reinstatement of some restrictions in other states, such as Florida and Texas.