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Strong drop in oil prices
Author:Mariusz Dasiewicz
Oil On Friday, the stock exchanges are heavily cheaper due to increasing investor concerns about the increasing number of Covid-19 cases and the emergence of a new coronavirus variant, which could jeopardise the prospect of energy demand. Meanwhile, the OPEC+ alliance is meeting next week to decide on its production policy for January – the brokers inform.
West Texas Intermediate oil barrel in deliveries for January costs US$76.08 on NYMEX in New York, below 2.95 percent. On Thursday there was no trade in the United States because of Thanksgiving, and all the transactions of that day will be booked on Friday.
Brent on ICE in London in deliveries for January is valued at USD 80.20 per barrel, below 2.46%.
The global markets are increasingly concerned about the increase in the Covid-19 pandemic, especially in Europe.
Because of the new coronavirus variant identified in South Africa, which experts believe is the most dangerous of the previously discovered and can be vaccine-resistant, Britain closes the borders for travellers from six African states.
As of Friday at noon, six countries – South Africa, Namibia, Zimbabwe, Botswana, Lesoto and Eswatini – will be back on the red travel list. This means that all flights from these countries will be suspended, only citizens and residents of Great Britain and Ireland will be allowed to enter the UK, but they will have to have paid quarantine at the hotel upon arrival.
In the first cities in Italy, due to the increase in coronavirus infection, the obligation to wear masks outside returns.
In Germany, Annalena Baerbock, head of the Greens, pointed out that the new government would "take 10 days to check" whether the current protection measures against the pandemic and vaccination were sufficient. Otherwise, the government with experts will consider introducing further measures – said "Die Welt" on Thursday.
In turn, in the Czech Republic, the outgoing government announced that a state of emergency would be introduced from midnight on Thursday to Friday in the country due to a serious epidemic situation. The new restrictions will begin to apply at 6 p.m. on Friday – among other things, the opening hours of restaurants, bars and clubs were limited. No restrictions on travel or curfew were introduced.
The state of emergency and partial lockdown is in force in Slovakia and the police are to carry out checks at border crossing points and check whether travellers have completed the arrival form, are vaccinated or prepared for at least a 5-day quarantine.
New year events are cancelled in Hungary due to worrying epidemic data.
"The new Covid variant discovered in South Africa is for the markets of alarm bells," says Vandana Hari, co-founder of Vanda Insights consulting company.
Meanwhile, the OPEC+ countries on December 2 will consider whether they will increase oil supply by 400,000 barrels per day in January 2022.
The OPEC+ advisory body estimates that the surplus oil on the markets in January and February 2022 will increase by 1.1 million barrels per day and will be 2.3 million and 3.7 million respectively, if more than 60 million barrels of oil will be placed on the market as part of the coordinated US action this week.
"I expect OPEC+ to remain on its strategy of adding 400,000 barrels a month, but if the new coronavirus variant becomes a serious problem in the coming days, it may result in an alliance stopping oil in the markets," says Hari.
Source: PAP
