Oil: ‘Dive’ over 10% with the new mutation weight

LAST UPDATE: 18.30

Oil prices plunged more than 10 percent on Friday as a new coronavirus mutation – found in South Africa – sparked fears of possible new lockdown measures that could hurt global demand recovery.

In particular, the January delivery WTI fell 11.54% to $ 69.34 a barrel, while the January delivery brent fell 10.34% to $ 73.72 a barrel.

The drop in the price of oil comes with the dip recorded by Wall Street today, after the discovery of a new variant of coronavirus with a high level of mutations in South Africa, which has seen a sharp rise in cases in recent days.

The mutation, formerly known as B.1.1.539, was also detected in Botswana and in Hong Kong travelers visiting South Africa, and a case was detected in Europe and especially in Belgium.

So far, several countries have banned travel from South Africa in an effort to stop the mutation from spreading.

The fall in prices takes place in view of the OPEC + meeting next week. Following the coordinated release of strategic stocks from the US and other countries earlier this week, the potential seriousness of the new mutation is another serious factor that OPEC + will have to consider in deciding whether to increase production.

“OPEC + has repeatedly stated that one area of ​​focus has been the resurgence of the virus, which is hurting oil demand as the group increases production,” said Jeffrey Halley, an OANDA analyst.

He added that OPEC + is unlikely to increase production above the previously agreed target of 400,000 barrels per day last week, “unless the market situation really worsens next week”.