Report

rss

Iraq News

Kurdistan

Economy

World

All News

Oil falls nearly 5% on jitters over vaccine efficacy

Category: Economy

Date: 2021-11-30T15:41:39+0000
Oil falls nearly 5% on jitters over vaccine efficacy

Shafaq News/ Oil prices tumbled nearly 5% on Tuesday after Moderna's chief cast doubt on the efficacy of COVID-19 vaccines against the Omicron coronavirus variant, spooking financial markets and adding to worries about oil demand.

The head of drugmaker Moderna told the Financial Times that COVID-19 vaccines are unlikely to be as effective against the Omicron variant of the coronavirus as they have been against the Delta variant.

Brent crude futures fell $2.76, or 3.76%, to $70.68 a barrel at 1338 GMT after slipping to an intraday low of $70.22, their lowest since late August.

U.S. West Texas Intermediate (WTI) crude futures fell $2.86, or 4%, close to $67 a barrel, after falling to a session low of $66.51.

Fed Chairman Jerome Powell will also tell U.S. lawmakers later in the day the variant could imperil economic recovery, prepared remarks show.

"The economic impact is driven by fear, and by the policy response... Fear is impacting travel. There are outright bans. But also the fear of being stranded which causes travel plans to alter," Paul Donovan from UBS said in a note.

Oil plunged around 12% on Friday along with other markets on fears the heavily mutated Omicron would spark fresh lockdowns and dent global oil demand. It is still unclear how severe the new variant is.

With a weakening demand outlook , expectations are growing that the Organization of the Petroleum Exporting countries, Russia and their allies, together called OPEC+, will put on hold plans to add 400,000 barrels per day (bpd) to supply in January.

"We think the group will lean towards pausing output hikes in light of the Omicron variant and the oil stockpile release by major oil consumers," Commonwealth Bank commodities analyst Vivek Dhar said in a note.

Pressure was already growing within OPEC+, due to meet on Dec. 2, to reconsider its supply plan after last week's release of emergency crude reserves by the United States and other major oil-consuming nations to address soaring prices.

"Following the global strategic reserve releases and the announcement of dozens of countries restricting travel... OPEC and its allies can easily justify an output halt or even a slight cut," OANDA analyst Edward Moya said in a note.

Source: Reuters

related

Iraq’ oil exports to the United States decline in the third week of April

Date: 2021-04-24 06:45:55
Iraq’ oil exports to the United States decline in the third week of April

OPEC chief says common objective with non-OPEC partners is market stability

Date: 2022-06-18 18:24:35
OPEC chief says common objective with non-OPEC partners is market stability

Oil drops as rally fizzles out on supply concerns, vaccine doubts

Date: 2020-11-27 08:09:44
Oil drops as rally fizzles out on supply concerns, vaccine doubts

US: Iraq among the country's top five exporters of crude oil

Date: 2020-09-06 10:02:41
US: Iraq among the country's top five exporters of crude oil

Oil prices back on the rise prior OPEC + meeting

Date: 2020-06-01 11:58:29
Oil prices back on the rise prior OPEC + meeting

U.S. upscaled crude imports from Iraq in October, EIA says

Date: 2021-11-07 10:26:03
U.S. upscaled crude imports from Iraq in October, EIA says

Oil prices of OPEC Members

Date: 2021-04-08 06:55:45
Oil prices of OPEC Members

China's annual crude oil imports drop for first time in 20 years

Date: 2022-01-14 10:45:34
China's annual crude oil imports drop for first time in 20 years