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New COVID variant causes fear of shutdown, oil plunges 11%

Friday’s oil futures fell to 11-week lows after the discovery of a new variant of the coronavirus responsible for COVID-19 in South Africa, with US benchmarks below the $ 70 / barrel threshold on Friday. I did.

Traders dumped oil after a US holiday on Thursday. As a result of the new coronavirus variant, we traded for fear that potential blockades and restrictions on other business and consumer activities could hurt fuel demand. Analysts also examined whether the move could delay OPEC +, its ally, OPEC +, a planned increase in production when members meet next week.

West Texas Intermediate Crude Oil Delivered in January
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For the first time since November 2, 2020, the most actively traded contract was below the 200-day moving average, a marker of long-term asset trends, down $ 9.16 (11.7%) to $ 69.22 a barrel.

In the shortened session following the US Thanksgiving holiday, trading volumes were expected to be low and amplify price fluctuations. Trading on oil futures closes one hour early at 1:30 pm Eastern Standard Time.

January Brent Crude
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The global benchmark was $ 8.50 (10.3%) down at ICE Futures Europe to $ 73.72 a barrel. The sale on Friday brought both WTI and Brent to the levels last seen on September 10.

Oil decline, and U.S. stocks And Asian stocks Discovery of a new coronavirus mutant There are high levels of mutations in South Africa, and the number of cases has surged recently.Investors poured money into gold
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Ministry of Finance
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And other perceived shelters like the Japanese Yen
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Some analysts thought the sale was overkill.

“Traders prioritize fear of this new tension over reality. We must take it seriously, but oil should find a floor in the $ 72 territory,” Price Futures Group said. Analyst Phil Flynn said in a memo.

“There are still concerns that US trading volumes may be low today, but the market seems to be ahead of risk, even though we can’t even understand how bad this new variant is. “He said.

This variant, now known as B.1.1.529, was also found in Botswana and Hong Kong, travelers to South Africa. The World Health Organization will hold an emergency meeting on Friday to evaluate this variant. Scientists do not know if this variant is more deadly or how susceptible it is to infection.

read: The world takes action when a new coronavirus variant emerges in southern Africa

However, scientists say this is the most mutated variant to date and may be more contagious than the delta variant that plagued the United States and Europe in the summer and fall.

Countries have already taken precautions, and the UK has stopped travelers from South Africa and five other countries since Friday. Anomalous shocks occur when Europe has fought a surge in incidents in many countries, including the economic powerhouse Germany. While Austria limits its population, other countries are also limiting it.

Jeffrey Halley, Senior Market Analyst at OANDA, said:

“OPEC + reiterates that the resurgence of COVID-19 eroding oil demand is one of the areas to watch out for as grouping increases production,” he wrote in a note to clients. Told to. Harry added that OPEC + will not increase production next week beyond the previously agreed 400,000 barrel / day target.

Traders say OPEC and its allies (called OPEC +) will abolish these increases in production next week after the coordinated release of strategic stockpiles by several countries, including the United States. I am wondering if I will decide.

The cartel and its allies had previously opposed requests from the Biden administration and others to accelerate production increases. OPEC + increased production on a monthly basis of 400,000 barrels per day to eliminate the previous production cuts.

Natural gas futures rise in January
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British thermal unit increased by 2.5% to $ 5.241 per million dollars.

December petrol
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Kerosene in December was down 11.6% to $ 2.0497 a gallon.
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It fell 11.5% to $ 2.1066 a gallon.

New COVID variant causes fear of shutdown, oil plunges 11%

Source link New COVID variant causes fear of shutdown, oil plunges 11%

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