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Oil prices fell by 10 percent on Friday, according to reports a new type of coronavirus it led to fears of an epidemic and another crisis over oil supplies, as the US plans to launch more products on the market.
West Texas Intermediate, the U.S. oil benchmark, fell by 13 percent to set at $ 68.15 a barrel as U.S. retailers returned after the Thanksgiving holiday. Brent’s global benchmark dropped by 12 percent to settle at $ 72.72 a barrel.
Both oil prices fell sharply in one day since the WTI price did not improve in April 2020 as the epidemic soared.
The price hike came just days after the White House, which was concerned about rising oil prices and rising oil prices, announced it would do so. to release The 50m oil-free barrels from the Strategic Petroleum Reserve in the coming months – a major drop in oil prices for governments – in conjunction with additional donations from five other countries.
The U.S. announcement Tuesday had a small effect on prices. But news of version B.1.1.529 Sars-Cov-2, first introduced in Botswana, is now full of ideas.
“It remains a clear question as to whether this new breed could threaten oil demand, with vaccine prices increasing since the summer,” said Rory Johnston, chief executive of Price Street, the research team. “But the markets are not expecting us to know. Sell now, ask questions later.
Last year’s closure reduced global demand by 20 percent during the worst season. But declining sanctions, a gradual decline in OPEC + international cooperation agreements and government funding have led to a resurgence in oil prices, which has skyrocketed since the coronavirus was announced last November.
Some analysts say a sudden drop in oil prices could force Opec + to suspend its planned additions – which have been cutting back on reductions that took place last year – when they meet next week.
Lower oil prices are a reflection of “fears that these changes will lead to restrictions on oil and gas prices,” says Neil Shearing of Capital Economics. “Opec is due to meet next week and this concern could cause them to delay or suspend their gradual increase.”
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Researchers at Opec + have already predicted that the oil market will increase exponentially in the first months of 2022 – and that surplus could grow by 1.1m barrels per day in January and February if the US and other countries advance and hit 66m oil barrels. entering the market through their planned release.
Friday’s sale will encourage the Opec + Saudi Arabian leader not to want to add too many items, experts say.
“The oil market is easy to hear about new products [coronavirus] various, largely because of what happened in 2020 and in the future when oil prices appeared in the past, “said Martijn Rats, a marketing specialist at Morgan Stanley.
But indications of a rise in European exports, OPEC bans, and slow spending cuts by oil companies could remain strong once the market is on foot, he said.
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