LAST UPDATE: 14.05
Losses of more than 2% were recorded by oil prices on Tuesday, following the downward trend of the stock markets, as the Moderna CEO Stefan Bancel predicts that existing vaccines will be much less effective In dealing with the new mutation, they rekindled concerns about the further dynamics of the economic recovery and the slowdown in demand for black gold.
In particular, St. Bancell warned the Financial Times that it would take months before pharmaceutical companies could develop new vaccines for specific scale variants.
He also noted that the high number of Omicron mutations in the spike protein used by the virus to infect human cells, as well as the rapid spread of the mutation in South Africa, suggest that current vaccine production may need to be modified next year.
“The economic impact is driven by fear and political backlash … Fear affects travel. There are immediate bans. But also the fear of being trapped that changes travel plans,” UBS’s Paul Donovan said in a note.
Along with the prospect of weakening oil demand, expectations are strengthened that OPEC + will suspend plans to increase production by 400,000 barrels per day from January.
“We believe that the cartel will move towards freezing production growth in the light of the Omicron mutation and the release of oil stocks by large consumers,” Commonwealth Bank analyst Vivek Dhar said in a note.
OPEC + will meet on December 2 to review the plan to increase the supply of “black gold”. “After the coordinated release of strategic stocks and the announcement of simple travel restrictions by dozens of countries, OPEC + could justify a decision to ‘freeze’ or cut production,” said Edward Moya, an OANDA analyst.
In this climate, the Brent oil delivery in February It fell by $ 1.93 or 2.65% to $ 71.28 a barrel, while earlier it reached the lowest level since September 1 at $ 70.52.
The West Texas Intermediate Crude Delivery January It lost $ 1.76 or 2.50% at $ 68.19 a barrel, while intra-conference it fell to $ 67.06, the lowest level since August 26.
Oil fell about 12% on Friday, along with other markets, amid fears that the highly mutated Omicron would trigger new padlocks and hit global oil demand. It is not yet clear how serious the new variant is.
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