Oil drop by 5% as new covariance raises global demand

The resulting oil moves in the setting sun.

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Fuel prices have plummeted for more than two months as demand for the new CV-19 increases.

With the bottom leg falling more than 800 points, Dow’s future prospects are in the middle of a sell-off in the market. The World Health Organization (WHO) on Thursday warned of a new covari diversity in South Africa. Although the World Health Organization says more testing is needed, it may be more resistant to the vaccine.

US oil prices fell 5 percent or $ 4.27 a barrel to $ 74.12. Future Benchmark Brent crude futures fell 5.6% to $ 77.64 a barrel.

Reduced travel and new locks can both hurt demand, as supply increases.

John Kilduff, a partner of Again Capital, said: Germany is already restricting travel to several countries in the region. “The last thing the oil complex needs is another air recovery,” he added.

On Tuesday, the Biden administration announced plans to release 50 million barrels of oil from strategic reserves. The move is part of a broader effort by energy-seeking countries to stabilize rapid oil prices by 2021. India, China, Japan, South Korea and the United Kingdom will release some of the stock.

“This [the sell-off] At the beginning of 2022, strategic oil reserves in the United States and other major consumer countries are expected to increase, and there will be a steady increase in the number of new coronavirus cases, analysts at Commercebank said. “In addition, the spread of the virus in South Africa has led to a sharp rise in hostility to financial markets today.”

OPEC and its oil producers will meet on December 2 to discuss production policy in January and beyond. Coronavirus has reduced demand for petroleum products by bringing 400,000 barrels of oil a day into the market each month, and the group has gradually eased its historic production cuts in April 2020.

Oil prices have been rising sharply for years, and despite calls from the White House and other sources, the group continues to post. West Texas Medium’s futures reached a seven-year high in October, while Brent rose to three years.

U.S. oil prices fell more than $ 10 a barrel from $ 85.41 in October.

“The integrated SPR release is gaining momentum, especially in the face of OPEC’s opposition and reaffirmation that it will bring the world market to a profit. The release is more than a drop in the bucket,” Kilduff added.

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