prices of Petroleum plunged $10 a barrel this Friday (26) their biggest one-day drop since April 2020, with a new variant of the Covid-19 scaring investors and raising concerns that a supply surplus could widen in the first quarter.
Oil fell along with the global stock markets due to fear that the variant could harm economic growth and fuel demand.
Great Britain, the United States, Canada, Guatemala and European countries have restricted travel from southern Africa, where the variant was detected.
O Brent oil closed down $9.50, or 11.6%, to $72.72 a barrel, a weekly drop of more than 8%.
Crude Oil in the US closed down $10.24 on Friday, or 13.1%, to $68.15 a barrel, down more than 10.4% for the week in high-volume trading after the holiday of Thanksgiving on Thursday in the United States.
“The market is looking at the worst-case scenario, where this variant causes massive demand destruction,” said Bob Yawger, director of energy futures at Mizuho.
Both contracts are heading into their fifth week of losses and their sharpest declines in absolute terms since April 2020, when WTI first went negative amid a coronavirus-induced oversupply.
Reference: CNN Brasil
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