In this framework, lBrent crude futures fell $ 2.87, or 3.9%, to $ 70.57 a barrel, after hitting an intraday low of $ 70.22. For its part, U.S. West Texas Intermediate (WTI) crude futures tumbled $ 3.77, or 5.4%, to $ 66.18 the barrel, the lowest level since August 23.
“The threat to oil demand is genuine,” said Louise Dickson, senior oil markets analyst at Rystad Energy. “Another wave of lockdowns could result in a loss of up to 3 million bpd (barrels per day) of oil demand in the first quarter of 2022.”
Oil slumped around 12% on Friday along with other markets on fear that the omicron variant would cause further lockdowns and affect global oil demand. It is not yet clear how severe the new variant is.
In the meantime, Federal Reserve Chairman Jerome Powell said today that the United States central bank will likely discuss accelerating its program to reduce bond purchases. at its next monetary policy meeting, amidst a robust economy and expectations that rising inflation will persist into the middle of next year.
Following Powell’s comments, oil prices, especially US crude futures, fell along with the major Wall Street indices, which were down more than 1%.
Source From: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
