Oil fell on Friday, after two days of gains, ending the week with losses, as fears of a possible drop in crude demand amid a rapid spread of the Omicron mutation have led to the adoption of new restrictive measures in many Countries.
Investors, meanwhile, are worried that the latest moves by the world’s central banks to tighten monetary policy in a bid to curb persistent high inflation could stifle already “fragile” economic growth.
“Concerns about Omicron are exacerbating the potential for reduced travel and transportation,” said Edward Meir, an analyst at ED&F Man Capital Markets, in a note to the company’s customers, adding that “the spread of the new variant is incredible, as “(The number of cases) doubles every two days in some countries.”
It is noteworthy that many companies in the US canceled the festive events they had planned and in addition urge their employees to return to telework, while the country reports more than 120,000 new cases per day, a number increased by 40% compared to two years ago. weeks, according to the New York Times.
France, meanwhile, imposed new restrictions on travelers from the United Kingdom on Thursday in a bid to “protect” itself from the Omikton mutation, while other countries are tightening cross-border travel and social contacts within their borders. .
Developments that rekindle the unpleasant memories of 2020, with lockdowns and travel bans, which caused the collapse of the oil market.
Thus, the January contract for West Texas Intermediate crude fell by $ 1.52 or 2.1% and closed at $ 70.86 a barrel.
On a weekly basis, US crude recorded losses of 1.1%, according to Dow Jones Market Data.
The picture is similar for Brent’s February contract, which lost $ 1.50 or 2% and ended the day at $ 73.52 a barrel. In the five days, the global benchmark for oil, recorded losses of 2.2%.
It is noted that both contracts “write” losses in a period of five days for the seventh time in the last eight weeks.
Meanwhile, oil products also fell today. January delivery fell 2.6% to $ 2.122 a gallon, losing 0.7% during the week, while the January contract for heating oil fell 2.1% to $ 2.22 a gallon. , completing the five-day 1.4% lower.
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