The Omicron variant kills the price of oil. Will last?
The announcement of the "Horrible" variant Omicron, the latest Covid gimmick, has raised some fears of a new lockdown, just temporally perfect to justify the failures of the containment policies applied so far. Among the side effects, the drop in oil prices, with the prospect of new lockdowns.
WTI lost 13% in one session, a decline not seen in years.
We are back under $ 70, a value that hasn't been seen for a few months.
This is the strongest single-day drop since May 2020, and we have gone back, in a single day, to the prices of three months ago. The push has been so strong that the OPEC + countries seem to be considering whether or not to continue with the previously agreed production increases to help the global recovery and not bring down prices.
Of course this variant is really timely: when the decrease in stocks in the USA, with the freeing of 50 million tons from warehouses, proved to be perfectly useless in reducing prices, a variant of which arrives on time like an express train, so far, very little is known, but that overnight it has become the terror of the West. Just to bring the fear of a new economic tightening and reduce consumption. A good fortune for Biden who no longer knew what to invent to contain the prices of fuel at the pump.
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The article The Omicron variant kills the price of oil. Will last? comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/ola-variante-omicron-ammazza-il-prezzo-del-petrolio-durera/ on Sat, 27 Nov 2021 08:00:40 +0000.