Fuel prices have fallen by more than 10% due to the threat of a viable alternative

Oil prices fell more than 10 percent on Friday, with fears of further epidemics looming and rising demand for new Corona virus variables as the United States plans to release more supplies.

West Texas Intermediate, U.S. oil prices fell 13 percent as U.S. traders returned after Thanksgiving. Brent crude fell 12 percent to $ 72.72 a barrel.

At the time of the April 2020 outbreak, WTI prices were negative for a short time and both oil indicators had the biggest one-day decline.

The fall comes just days after White House announced plans to release 50m barrels of crude oil from strategic oil reserves – the biggest drop in government reserves. – Combined with contributions from five other countries.

Tuesday’s US announcement had little immediate effect on prices. But the first-ever B.1.1.529 Sars-Cov-2 variant in Botswana has now won.

“This new discrepancy poses a real threat to fuel demand, and it remains a clear question as vaccines have increased significantly since the summer,” said Rory Johnston, director of Price Street Management. “But markets are not waiting to find out. Sell ​​now, ask questions later.

Last year locksmiths reduced global demand by as much as 20 percent. However, easing restrictions, declining supply of OPEC + in emerging countries, and government stimulus costs have led to a doubling of oil prices since the announcement of the Coronavirus vaccine last November.

Other analysts say a sudden fall in oil prices could force OPEC + to suspend planned supply increases – offsetting last year’s cuts – by next week’s meeting.

Capital Economics Neil Shering said that the fall in oil prices “is a sign that the new difference will lead to wider travel restrictions and a reduction in oil demand.” “OPEC is due to meet next week and these demand concerns could lead to a gradual increase in supply or delay.”

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OPEC Analysts He predicted that the oil market would make a profit in the first months of 2022 – and that if the United States and other countries went ahead and imported 66m barrels of oil, profits could swell by 1.1m barrels in January and February. You have entered the market with your planned stock.

Analysts say Saudi Arabia is unwilling to add much more to Friday’s sale of OPEC +.

“The oil market is exciting for the latest news. [Covid-19] Margin Ratts, a senior commodity strategist at Morgan Stanley, is particularly flexible in light of the 2020 experience and the improvement in oil prices.

However, he acknowledged that their numbers were not enough to defeat the EU, but sought to justify military action.

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