Global oil price fell to a two-month low as a new variant of COVID-19 emerges.
Gatekeepers News reports that the global oil prices fell to $77 per barrel, the lowest since September 2021 amid a new coronavirus variant.
The fall also comes after the United States released millions of barrels of oil from strategic reserves.
The global benchmark, Brent crude oil futures dropped by 5.63 percent on Friday to $77.59 a barrel.
Also, the U. S West Texas Intermediate (WTI) crude oil futures fell by 6.52 percent to $73.28 at 12.06 pm.
An analyst for PVM, an independent broker of oil instruments, Tamas Varga, told Reuters that the unforeseen outbreak of the new variant coupled with the OPEC’s price gauge could affect fuel demand and reduce economic growth.
Varga said, “OPEC’s initial assessment of the coordinated (stockpile) release and the sudden appearance of a new variant of the coronavirus raises serious concerns about economic growth and the oil balance in coming months.”
According to reports, investors are also monitoring the response of China to the U.S. release of millions of barrels of oil from strategic reserves in partnership with other large consuming nations, a part of its to cool prices.
Based on findings of a panel of experts that advises Ministers of OPEC countries, an OPEC source revealed to Reuters that this release could increase supplies in the coming months.
The OPEC further said the Economic Commission Board expected a surplus of 400,000 barrels per day (bpd) in December, rising to 2.3 million bpd in January and 3.7 million bpd in February if consumer nations proceeded with the releases.
