Jump to content

Oil prices mixed, U.S. crude falls after COVID-19 flight cancellations


MongiIG

Recommended Posts

Oil prices mixed, U.S. crude falls after COVID-19 flight cancellations

Reuters.pngCoronavirusDec 27, 2021 
image.png

By Florence Tan and Koustav Samanta

SINGAPORE (Reuters) -Oil prices were mixed on Monday, with Brent inching higher while U.S. crude futures slipped after airlines called off thousands of flights in the United States over Christmas holidays amid surging COVID-19 infections.

U.S. West Texas Intermediate crude futures fell 63 cents, or 0.9%, to $73.16 a barrel by 0510 GMT. The contract did not trade on Friday because U.S. markets were closed for the Christmas holiday.

Brent crude rose 20 cents, or 0.3%, to $76.34 a barrel after settling down 0.92% on Friday.

Both contracts jumped 3% to 4% last week after early data suggested that the Omicron variant of COVID-19 may cause a milder level of illness.

However, the highly transmissible variant is causing COVID-19 case numbers to surge across the world.

In the past three days, thousands of passengers travelling during Christmas have been stranded after U.S. airlines cancelled flights due to COVID-related staffing shortages.

"Lower travel equalling lower economic activity in the U.S. equals lower WTI, the U.S. oil benchmark," said OANDA analyst Jeffrey Halley said.

Oil markets, in general, remain cautious about near-term demand, market watchers said.

"Though Omicron is spreading faster than any COVID-19 variant yet, a relatively relieving (piece of) news is that most people infected with Omicron are showing mild symptoms, as least so far," said Leona Liu, analyst at Singapore-based DailyFX.

"That said, oil prices did suffer for the Omicron concerns, but the downside pressure may ease if the variant is proved to be more mild," she added.

In Europe, natural gas prices touched record highs last week on tight supplies, supporting Brent crude prices.

Russian President Vladimir Putin said on Friday that the European Union can only blame its own policies for record gas prices, saying some of its members resell cheap Russian gas at much higher prices within the bloc.

Looking ahead, oil investors are focused on the next OPEC+ meeting on Jan. 4.

 

The Organization of the Petroleum Exporting Countries (OPEC and allies including Russia, known as OPEC+, will meet to decide whether to go ahead with a 400,000 barrels per day (bpd) production increase in February.

Russia believes oil prices are unlikely to change significantly next year with demand recovering to pre-pandemic levels only by the end of 2022, Deputy Prime Minister Alexander Novak said on Friday.

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • It would be difficult and the next line of action would be withdrawal of assets to a good alternative exchange or wallet and observe how the whole drama will end 
    • The recent turbulence in the market has resulted in significant losses and liquidations for many traders. While futures trading offers the potential for rapid portfolio growth, it also carries considerable risks, demanding both bravery and a strong belief in technical analysis (TA). However, despite my attempts, futures trading hasn't been my strong suit. Creating a resilient crypto portfolio doesn't necessarily mean diving into high-risk ventures like futures trading. It took me some time to realize that there are alternative, nearly risk-free methods to build a solid portfolio. Yet, the allure of quick profits in crypto often overshadows the patience required for these strategies. Whether you're involved in futures or spot trading, the market's unpredictability can lead to significant losses, as demonstrated by the recent downturn affecting BTC and most altcoins. Many traders found themselves unprepared, lacking sufficient USDT reserves for dollar-cost averaging (DCA) during market recoveries. Nevertheless, there is hope. For those looking to maximize profits while minimizing risks, products such as launchpools, launchpads, or PoolX offer promising opportunities. Available on various top centralized exchanges (CEX), these platforms involve staking assets like USDT, BGB, BNB, or OKB, depending on the exchange. One observation I've noted is that whenever an exchange announces a launchpool or launchpad event, the value of the exchange token tends to soar. This surge is fueled by users eager to participate and earn complimentary tokens. Following the event, participants can benefit from both the acquired tokens and the increased value of the exchange token. This approach has proven successful for me, as evidenced by the recent ENA launchpool event on Bitget. Have you explored similar opportunities in the past? Please feel free to share your experiences.
×
×
  • Create New...
us