World oil prices fell by 13-15% on Friday%

2021-11-29 12:06:44
Machine translation
World oil prices fell by 13-15% on Friday%

Global oil prices collapsed on the news about the appearance and rapid spread of a new strain of coronavirus "Omicron", which may lead to increased quarantine restrictions due to the introduction of new lockdowns.


January Brent crude futures on the ICE Futures Europe exchange on Friday fell 13% to 7 72/barrel, and WTI crude on the New York NYMEX exchange-15% to 6 68/barrel.


WHO experts said that the new strain of coronavirus has a larger number of mutations, so it is not known whether vaccines will be effective against it. Some countries have stopped air traffic with South Africa and 5 other African countries. The appearance of the new strain occurred during a new wave of covid-19 cases in the EU. Austria has already announced the introduction of a lockdown, and Germany and the Netherlands have sent restrictions to unvaccinated individuals.


This week, a meeting of OPEC+ countries will be held, but the market does not expect that they will agree to increase production by more than the planned 400 thousand barrels/day, especially against the background of falling oil prices, new outbreaks of Covid-19 and the decision of the United States and partners to sell oil from strategic reserves. There is an opinion that OPEC+ countries may even reduce the previously agreed plan to increase production.


According to OPEC+ estimates, in December the excess supply on the oil market will amount to 400 thousand barrels/day, in January it will increase to 2.3 million barrels/day, and in February – to 3.7 million barrels/day if consumer countries continue to sell oil from reserves.


Pfizer, AstraZeneca and Moderna recently announced that they will be able to adapt their vaccines to a new strain of coronavirus within 6 weeks and start delivering batches within 100 days if it is found that the vaccine is not coping with the new state due to mutations.


This information calmed the markets somewhat, so oil prices started the week with an adjustment. January Brent crude futures rose 4% to 7 75/barrel, while WTI crude futures rose 4.4% to.71/barrel.


It is worth noting that the fall in oil prices almost did not affect the quotes of "energy" crops – corn, rapeseed and soybean oil, which on Friday ended trading at high levels. Therefore, market volatility will increase this week.

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