Oil prices skyrocket due to new threat to investors – what happened

Oil prices jumped on Monday in connection with information that OPEC + may stop increasing production amid the spread of the new Omicron coronavirus strain.

It is reported by the Reuters news agency.

It is noted that oil has risen in price by more than 4% in one day, after slipping by 10% during the previous trading session.

Brent crude oil has risen in price by 4.5% and its price is up to $ 75.98 per barrel, and WTI oil rose by 5.0% to $ 71.50 per barrel.

The fall of more than 10% on Friday, November 26, was the largest since April 2020. Investors are scared that the new strain will impede economic recovery and collapse oil demand.

“If the market continues to fall, OPEC + may suspend planned increases in oil production to support prices,” said Hiroyuki Kikukawa, general manager of research at Nissan Securities.

The publication also notes that the Organization of the Petroleum Exporting Countries has postponed technical meetings with its allies until the end of the week. Thus, OPEC + wants to give more time to assess the impact of the new strain on demand.

The Organization will meet on Thursday and possibly announce a final decision on whether to adjust the plan to increase production by 400,000 barrels per day in January and beyond.

What’s happening with oil prices

At the end of October, the world’s oil exchange prices broke all records and jumped to more than $ 80 per barrel. This brought them to the pre-quarantine level and refuted all the forecasts of experts. The reason was the increased demand for energy resources.

In addition to oil, prices for natural gas have risen sharply; over the past six months, prices have jumped up and fell several times to record levels.

“Today,” together with the expert, we figured out why the “commodity luck” has come to an end for Ukraine and what will happen to oil prices next.

We also wrote about how the high cost of natural gas can hit Ukrainian food producers.