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    Oil down 10% on new Covid variant concerns

Summary

Prices in New York and London see biggest one-day drop since April 2020

by: Dale Lunan

Posted in:

Complimentary, Covid-19, Market News

Oil down 10% on new Covid variant concerns

Crude oil prices in London and New York fell by 10% on November 26 amid fresh concerns that an emerging new variant of the Covid-19 virus will lead to wider lockdowns and other measures.

On the ICE Futures Exchange, January Brent dropped to $74.38/b from $82.22/b while in New York, where markets were closed November 25 for the US Thanksgiving holiday, January contracts for WTI on the NYMEX exchange dropped by 12% in early trading, to $68.80/b.

It was the biggest single day drop in global crude oil prices since April 2020, when Covid measures and an OPEC+ price war wreaked havoc on markets.

Natural gas prices, meanwhile, are heading in the opposite direction: on the CME exchange, Henry Hub was up 7.5% at mid-day, to $5.49/mn Btu.