Oil drops 11% due to the new Covid-19 strain
Oil prices recorded at the end of trading today, following the announcement of the new African mutation of Covid-19, as Brent crude lost 11%, recording $72.9 per barrel, and US crude lost more than 13% to trade below $69 per barrel, and this is the biggest loss for the oil markets in the last two months.
Fears were renewed of the decline in demand on the oil markets, following the discovery of the new, most dangerous Corona mutant of the Corona virus, and renewed fears about closures and travel suspensions, to close the markets with the largest weekly loss.
This comes days before the OPEC meeting next December, and amid an American tendency to abandon part of the strategic stockpile to calm markets that witnessed unprecedented rises amid a crazy rise in demand for oil, as its price exceeded the $85 barrier per barrel.
The decline in oil came as part of a wave of collapses in global stock exchanges, as the US Dow Jones index plunged more than 900 points amid fears of the development of virus infections and its impact on global economic growth.