Oil sinks for fear of the new variant of the coronavirus

At 9:03 a.m. local time (13:03 GMT) on the New York Mercantile Exchange (Nymex), WTI futures contracts for January delivery were $ 4.35 off the previous close.  File photo.  EFE / Murtaja Lateef
At 9:03 a.m. local time (13:03 GMT) on the New York Mercantile Exchange (Nymex), WTI futures contracts for January delivery were $ 4.35 off the previous close. File photo. EFE / Murtaja Lateef

The price of intermediate oil of Texas (WTI) plummets more than 10% this Friday, plagued by concerns about demand following the emergence of a new variant of coronavirus.

At 16:00 GMT, WTI fell 10.1% to $ 70.46 a barrel, while Brent crude from the North Sea, a benchmark in Europe, fell by one 9.1%, at $ 74.74.

The US benchmark crude, which on Thursday did not operate for the Thanksgiving holiday in the North American country, was affected by the market fear that the new variant will significantly affect the global economy, since there are already several countries that have announced travel restrictions for passengers arriving from South Africa and neighboring nations.

A healthcare worker performs a PCR test against coronavirus disease (COVID-19) at OR Tambo International Airport in Johannesburg, South Africa, November 26, 2021. REUTERS / Sumaya Hisham
A healthcare worker performs a PCR test against coronavirus disease (COVID-19) at OR Tambo International Airport in Johannesburg, South Africa, November 26, 2021. REUTERS / Sumaya Hisham

These measures, which could be adopted by a large number of countries, predictably will affect the volume of transfersTherefore, it is estimated that the demand for “black gold” will decline at a time when production had just begun to increase.

In addition, this week the president of the United States, Joe biden, has announced that will release 50 million barrels of crude from the Strategic Petroleum Reserve in an initiative together with other major energy consumers such as China, India, Japan, the Republic of Korea and the United Kingdomthe White House announced in a statement.

“It appears that the discovery of a variant of coronavirus in southern Africa is scaring markets globally. Germany is already limiting travel from several affected nations in the region, “the representative of Again Capital John kilduff.

“The last thing oil needs right now is another threat to the recovery of air travel,” he added.

Five minutes after the start of the session on the New York Stock Exchange, the Dow Jones fell 715.15 points, to 35,089.23, while the selective S&P 500 fell 1.22% or 57.59 units, to 4,643 , 87.  File photo.  EFE / Justin Lane
Five minutes after the start of the session on the New York Stock Exchange, the Dow Jones fell 715.15 points, to 35,089.23, while the selective S&P 500 fell 1.22% or 57.59 units, to 4,643 , 87. File photo. EFE / Justin Lane

On the other hand, the main stock indices of the United States also registered falls this Friday, after the news the new variant of the coronavirus that has caused restrictions on international travel.

At 16 GMT, the benchmark Dow Jones index was down 2.64%, up to 34,859.95 points, while the S&P 500 was down 2.17%, up to 4,599.52 points.

(With information from EFE)

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