| Oil headed for the biggest monthly loss since the early days of the coronavirus pandemic as investors weighed risks posed by the new omicron variant, with a top drugmaker saying the world may now need new vaccines.
WTI plunged 3%, failing to hold on to early gains, as global benchmark Brent also tumbled. There is no way current shots will provide the same level of protection against omicron as they do against delta, Moderna Inc. Chief Executive Officer Stephane Bancel told the Financial Times.
Crude’s losses formed part of a broad retreat in risk assets as equities and copper also sank, while gold rose. Oil has sunk 19% in November, set for the biggest monthly loss since March 2020, when the onset of the pandemic crushed global consumption. Investors are now seeking clues about the
challenge posed by omicron, and how producers will respond.
The Organization of Petroleum Countries and its allies will decide on Thursday whether to pause a run of monthly supply hikes. “It’s probably too early to say with some conviction on where the market is headed next, until we have more data on the new variant,” said Howie Lee, an economist at Oversea-Chinese Banking Corp. in Singapore. If OPEC+ pauses, “it will provide another reason for oil to find a firmer footing,” he said.
OIL MARKET ROUND-UP: (Bloomberg)
* OPEC+ to Discuss Response to Latest Covid Variant This Week
* U.S. Says It’s Prepared to Release More Oil Before OPEC+ Meeting
* Saudi Energy Minister Says Not Concerned About New Covid Variant
* Aramco CEO Stays Bullish on Oil Demand After Friday’s Price Rout
* Oil Set for Biggest Monthly Loss Since Virus’s Early Days:
* American Drivers Set for Relief at the Pump as Oil Rally Cools
* Oil Inventory at Key Cushing Storage Hub Rose by 1.72M Bbl
* Two Supertankers With Sour Crude From U.S. SPR Sailing to Asia
* U.S. Weekly Gasoline Imports From Europe Doubles; Diesel Surges
|
