Crude oil futures fell more than 5% overnight after a Moderna executive warned that existing vaccines would be less effective in protecting against the new coronavirus variant.
- WTI crude futures fell $3.77, or 5.4%, at $66.18 a barrel.
- BRENT crude futures were down $2.87, or 3.9%, at $70.57 a barrel.
The new COVID variant could hurt global economic growth prospects, especially at a time when the global economy is already reeling from supply chain problems, higher inflation, and labor shortages.
Politicians also predict that this new variant could further increase inflation.
Investors are keeping a close eye on the OPEC+ oil production policy meeting on December 2. There is speculation that OPEC+ may suspend production in January 2022 to cope with falling demand and counter the actions of the United States and its allies to withdraw crude oil from their strategic stockpiles.
In addition, investors are also following the crude oil inventory figures released today by the EIA.
The Spot Market is Open
Wednesday, December 1, 2021