- Advertisement -spot_img
Wednesday, December 8, 2021

Oil prices plunge to 2-month low as new COVID-19 variant puts markets on edge

Oil prices fell more than 5 percent in early trading on Nov. 26, hitting a two-month low as the emergence of a new COVID-19 variant scared investors, lowering risky assets like stocks and lifting areas like gold and bonds.

Brent crude, the global benchmark, fell 5.8 percent to $ 77.49 a barrel by 6:43 am New York time, while WTI crude fell about 6.0 percent to $ 73.33 per barrel. barrel.

Crude oil prices may face additional pressure from the recently announced coordinated release of stocks from strategic national reserves in a number of countries, including the United States, in an attempt to reduce rising energy prices.

Beyond the plunge in oil prices, news headlines about the new option overnight sparked a broader wave of anti-risk sentiment in the markets as major stocks in Asia and Europe plummeted and investors turned towards safe havens such as gold and bonds.

The yield on 10-year US Treasury bonds fell more than 12 basis points to 1.514 percent by 6:58 am New York time, while the spot gold price rose 1.3 percent to $ 1,811.63 an ounce. Bond yields are moving in the opposite direction to prices.

“This option is a new risk for the markets. We cannot say how much he can avoid getting vaccinated, ”said Takashi Hiroki, chief strategist at Monex in Tokyo, Japan.

Little is known about the new COVID-19 variant found in South Africa, Botswana and Hong Kong, but South African scientists say it has an unusual combination of mutations and could avoid immune responses or make it more transmissible.

Read Also:  State Republicans Prepare Assistance to Citizens Out of Work Due to Vaccine Introduction

COVID-19 is a disease caused by the CCP (Chinese Communist Party) virus.

News of the new option prompted the European Union authorities to try to stop air travel from the South African region.

“The Commission will propose, in close cooperation with Member States, to activate the emergency brake to stop air traffic from the South African region due to option B.1.1.529 of concern,” said Ursula von der Layen, head of the EU Commission. tweet on friday.

The UK has temporarily banned flights from South Africa, Namibia, Botswana, Zimbabwe, Lesotho and Eswatini since Friday and has asked returning British travelers from these destinations to quarantine.

The World Health Organization technical group is due to meet on Friday to discuss the new option at an urgent meeting requested by South Africa.

Mimi Nguyen Lee and Reuters contributed to this report.

To follow

Tom Ozimek has extensive experience in journalism, deposit insurance, marketing and communications, and adult education. The best writing advice he has ever heard is from Roy Peter Clarke: “Hit your target” and “leave the best for last.”

World Nation News Deskhttps://www.worldnationnews.com
World Nation News is a digital news portal website. Which provides important and latest breaking news updates to our audience in an effective and efficient ways, like world’s top stories, entertainment, sports, technology and much more news.
Latest news
Related news
- Advertisement -

Leave a Reply