Oil prices are falling due to concerns about a new COVID variant

An oil tanker queues in the ocean off the Port of Long Beach-Port of Los Angeles complex, in the midst of the coronavirus pandemic (COVID-19), in Los Angeles, California, USA, April 7, 2021. REUTERS / Lucy Nicholson / File Photo

Sign up now for FREE unlimited access to

  • Brent oil falls below $ 80 a barrel
  • New COVID-19 variant discovered in South Africa
  • Investors are looking to China for any reserves

LONDON, Nov. 26 (Reuters) – Oil prices recorded their sharpest daily drop since July on Friday, when a new COVID-19 variant scared investors and raised concerns that a supply surplus could swell in the first quarter.

Oil fell with global stock markets due to fears that the variant, which the UK said researchers considered the most important discovery to date, could limit travel and curb economic growth and fuel demand. read more

Brent oil fell $ 4.07, or 4.9%, to $ 78.15 a barrel by 0830 GMT.

Sign up now for FREE unlimited access to

US West Texas Intermediate (WTI) oil was down $ 4.83, or 6.1%, to $ 73.56 a barrel, after reaching a two-month low during the session. There was no settlement for WTI on Thursday due to the autumn Thanksgiving party.

Investors also looked at China’s response to the US release of millions of barrels of oil from strategic reserves in coordination with other major consumer nations, part of the country’s efforts to cool prices. read more

Such a release is likely to increase supplies in the coming months, an OPEC source said, based on the findings of a panel of experts advising ministers in the Organization of the Petroleum Exporting Countries. read more

The Economic Commission Board expects a surplus of 400,000 barrels per day (bpd) in December, rising to 2.3 million bpd in January and 3.7 million bpd in February if consumer nations went ahead with the release, the OPEC source said.

The forecasts overshadow the prospects for a December 2 meeting between OPEC and its allies, known as OPEC +, when the group will discuss whether to adjust the plan to increase production by 400,000 bpd in January and beyond.

“OPEC’s initial assessment of the coordinated (stock) release and the sudden appearance of a new variant of the coronavirus raises serious concerns about economic growth and the oil balance in the coming months,” said PVM analyst Tamas Varga.

Iranian production was also in focus, with indirect talks to be resumed on Monday between Iran and the United States to revive a 2015 nuclear deal that could lead to the lifting of US sanctions on Iranian oil exports. read more

However, the fact that Iran and the International Atomic Energy Agency did not reach a modest agreement on monitoring Tehran’s nuclear facilities this week does not bode well for next week’s talks, Eurasia analyst Henry Rome said.

Sign up now for FREE unlimited access to

Reporting by Shadia Nasralla; Additional reporting from Florence Tan in Singapore; Edited by Edmund Blair

Our standards: Thomson Reuters Trust Principles.

Source link

Back to top button