Oil prices claw back some of Friday’s rout, as OPEC reportedly set to delay technical meetings

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Oil prices climbed on Monday, offsetting a portion of the dramatic losses seen at the end of last week as markets scramble to assess a new coronavirus version. Investors are also looking forward to meetings of OPEC this week, some of which have reportedly been delayed due to recent price volatility.

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Declared “a sort of concern” by the World Health Organisation’s Technical Advisory Group, the new strain has led to new travel restrictions around the world. For the commodity, investors are concerned about the hit to demand as the recovery potentially impacts speed bumps.

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But for West Texas Intermediate Crude January delivery CL00 on Monday,
+5.08%

CLF 22,
+5.08%
It rose $3.24, or 4.7%, to $71.37. On Friday, the contract closed $10.24, or 13.1%, at $68.15 a barrel on the New York Mercantile Exchange, according to Dow Jones market data, the biggest one-day drop for a one-month contract since April 20, 2020. .

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Jan Brent Crude BRNF22,
+4.50%,
The global benchmark rose $2.95, or 4%, to $75.66 a barrel on ICE Futures Europe. On Friday, Brent fell $9.50, or 11.6%, to $72.72 a barrel, the biggest one-day percentage drop since April 21, 2020, with both WTI and Brent seeing their lowest levels since September 9. are.

Selling also occurred on a shorter trading day after the Thanksgiving Day holiday, with lower volumes potentially magnifying any moves. The idea that Friday’s sell-off went too far was gaining momentum at the start of the week, as US stock futures also signaled a further rebound for equities.

“The drop in the oil price appears to be somewhat overshadowed by concerns that any new restrictions could affect demand, which helps to explain the rebound later this morning, although it appears to be an issue for distressed consumers. That would be welcome news, for those who have suffered a sharp rise in petrol prices,” Michael Hewson, Chief Market Analyst, CMC Markets, said in a note to clients.

The emerging outlook from last week is that the sharp sell-off will give major oil-producing countries a reason to halt planned production growth. A pair of technical meetings for the Organization of the Petroleum Exporting Countries this week have reportedly been moved so that the group can assess the version.

OPEC and allies known as OPEC+ pushed a joint technical committee from Monday to Wednesday, according to Businesshala and other media outlets, citing sources. A joint ministerial monitoring committee has reportedly been shifted from Tuesday to Thursday.

As for Omicron, some health experts in South Africa have reportedly said that the new variant causes only mild symptoms, although more data is still needed. But countries are enforcing restrictions, with Israel and Japan closing their borders entirely to foreign visitors, as more cases emerge in Europe and elsewhere.

More Omicron cases emerge as world scrambles to learn more about latest COVID strain

Elsewhere in the Energy Sector, December Gasoline RBZ21,
+5.10%
After sinking 12.5% ​​to $2.0294 a gallon on Friday, it rose 4.6% to $2.123 a gallon. december heating oil HOZ21,
+4.43%
After falling 12.1% to $2.0945 a gallon, it climbed 4.2% to $2.1780 a gallon.

natural gas futures ng00,
-6.97%
British thermal units per million fell 7% to $5.0890 per million, after climbing 7.5% on Friday.

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