Oil drilling rigs
Oil prices declined over 11% on Friday, Nov. 26, hurt by the growing concerns about the new COVID-19 variant discovered in South Africa.
The US rushed to impose restrictions on travel to South Africa and other seven countries. Meanwhile, the European Commission called on members to restrict travel to areas where the new variant named Omicron appears. Germany decided to prevent the entry from those coming from South Africa.
OPEC forecasts an oil release from the reserves of major consumer countries led by the US to swell a surplus in oil markets, Reuters reported, citing a source.
The source added that the Economic Commission Board (ECB) sees the oil market with a 400,000 barrels per day (bpd) surplus in December, with the surplus expanding to 2.3 million bpd in January and 3.7 million bpd in February if the consumer countries go ahead with the release.
Brent crude for January delivery fell 11.6%, or $9.53 a barrel, to $72.72 a barrel, recording weekly losses of 7.8%.
NYMEX crude contracts for January delivery also declined 13%, or $10.24 a barrel, to $68.15 a barrel, recording weekly losses of around 10.2%.
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