OPEC+ begins two days of talks amid oil rout
OPEC and its allies begin two days of meetings on Wednesday to decide whether to release more oil into the market or restrain supply amid an oil price rout and fears the Omicron coronavirus variant could weaken global energy demand.
Oil prices fell to near $70 a barrel on Tuesday from as high as $86 in October, posting their biggest monthly decline since the outset of the pandemic, as the new variant raised fears of a supply glut.
Oil slumps on jitters over vaccine efficacy
Oil prices tumbled more than 3% on Tuesday after Moderna’s CEO cast doubt on the efficacy of Covid-19 vaccines against the Omicron coronavirus variant, spooking financial markets.
The head of drugmaker Moderna told the Financial Times that Covid-19 vaccines are unlikely to be as effective against the Omicron variant of the coronavirus as they have been against the Delta variant.
Brent crude futures fell $2.87, or 3.9%, to $70.57 per barrel after slipping to an intraday low of $70.52, the lowest since Sept. 1.
U.S. West Texas Intermediate (WTI) crude futures settled 5.4%, or $3.77, lower at $66.18 per barrel.
The Moderna CEO’s comments were just a catalyst for the market which was already weak, said a Singapore oil trader who declined to be named due to company policy.
Reference: CNBC, Reuters
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