British Columbia Sun

Further unusual days preceding for the oil production following Friday cost fall

Key takeaways: 

  • The New COVID variant increases worries leading to the OPEC+ conference next week.
  • Oil costs took a swift decline Friday among concerns about a different variant of the covid-19.

Oil prices dropped, covid’s new variant: 

Only a few days ago, there was discussion about oil’s inexorable run to $100 US a tub. 

Even U.S. President Joe Biden’s idea to use his nation’s resources to relieve the pain at the pumps for Americans rose to some critics to be little more than a speed bump.

Oil prices ran recklessly into pandemic concerns yet again, falling to levels not seen since September. The North American benchmark oil cost, West Texas Intermediate, lost almost $10 US on Friday, or 13 per cent, to buy under $69 US a barrel.

The decline came among concerns about a new variant of the COVID-19 virus that could discourage both economic increase and fuel need.

The news showed once again how unpredictable markets however are.

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“The market, I think, forgot about COVID,” stated Al Salazar, vice-president of the intelligence division at Enverus, an energy data analytics company.  Source – cbc.ca

The pandemic, of course, never actually ran away. But several people could see more enjoyable days ahead. 

The bullish view for oil was backed by significant price gains over the last year, boosted by rising energy demand as economies rose from pandemic lockdowns and health constraints.

Friday, however, was a reminder of the trouble the pandemic can still stir up, and how jittery markets remain.

It’s still new days in evaluating the possible result of the variant. Canadian health experts alert against alarm, stating no proof existing COVID-19 vaccines wouldn’t proceed to be useful.

But investors’ concerns that the variant could hit the economic improvement off course were fast to begin Friday, knocking markets broadly, not only oil and gas.

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