The world fears: the price of oil has collapsed, and the demand for fuel has fallen

Oil prices drop due to new coronavirus stamps / Photo: Getty Images, Collage: Today

Due to an increase in the number of new cases of Omicron coronavirus in Europe and the United States, oil prices as of December 20 decreased by 3.18%.

This is evidenced by the data of exchange trading on the Investing.com website.

As of 10:26 on December 20, 2021 the cost of a barrel of February Brent oil was $71,20 (-3,16%). January barrel WTI oil bargained for $68,22 (-3,73%)… Previous trading on benchmarks ended at the level $ 73.52 and $ 70.08 respectively. January WTI futures expire with the close of the session on Monday.

Yes, the authorities of the countries are afraid of new restrictions. After all, this will lead to a drop in fuel demand. And since the incidence of coronavirus infection is growing in many regions, restrictive measures cannot be avoided.

Reasons for price fluctuations

Oil prices are highly volatile. Back in late November, they skyrocketed due to a new coronavirus mutation that scared investors.

However, a week later, they collapsed sharply due to the same Omicron strain.

On December 16, exchange prices for oil began to rise again. One of the reasons for the rise in prices is a significant decrease in oil reserves in the United States, which led to an increased demand for energy resources, despite the emergence of a new strain.

Earlier, we wrote about the 20 largest oil and gas companies in the world. And also, together with the expert, we figured out why the so-called commodity luck came to an end for Ukraine.

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Source From: Segodnya

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