Corona’s pressures and the supply drop by 10 dollars in oil

Oil prices fell with global stock markets, on fears that the new strain of the Corona virus would undermine economic growth and fuel demand, and oil prices lost $ 10 on Friday, recording the largest one-day decline since April 2020, after the discovery of a new strain of the Corona virus sparked Investors worried and boosted fears of a global oversupply inflation in the first quarter of next year.

And the World Health Organization classified the new strain as (alarming) and named it Omicron, according to CNBC Arabic, and countries including the United States, Canada, Britain, Guatemala and European countries imposed restrictions on travel from southern Africa, where the strain was monitored.

Brent crude futures fell $9.50, or 11.6%, to $72.72 a barrel when they settled, recording a weekly decline of more than 8%, and West Texas Intermediate crude fell $10.24, or 13.1%, to $68.15 a barrel, and at the same time, investors are waiting for China’s reaction to Last Tuesday, the administration of US President Joe Biden announced plans to release millions of barrels of oil from strategic reserves in coordination with other major consumer countries in an attempt to cool prices.

A source in the Organization of the Petroleum Exporting Countries (OPEC): Such a move will likely result in an increase in supplies in the coming months, according to the findings of a committee of experts advising ministers of OPEC countries, and the source stated that the Council of the OPEC Economic Committee expects a surplus of 400,000 barrels per day in December increases to 2.3 million barrels per day in January and 3.7 million in February if consuming countries go ahead with withdrawals.

Expectations of an increase in oil supply hang over the prospects of a meeting of OPEC +, the group that includes OPEC and its allies on December 2, to decide on immediate production.

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