Omicron fears pushed down crude oil prices in international market on Monday with prices falling by $ 2, as Europe and the US recorded a surge in the new corona variant. This stoked investor fears across the world causing a fall in oil prices.
While Brent futures (the most traded oil benchmark) fell by $ 2 to $ 71.51 a barrel, WTI crude futures slumped by $ 2.2. Crude prices which hit over $ 80 a barrel fuelling fears that oil could cross $ 100 a barrel fell by $ 10 a barrel November last week. However, it rose last week, and now it has fallen again thereby continuing its volatility.
Oil prices which were staying subdued following lockdowns subsequent to Covid 19 outbreak had been rising steadily after the pandemic came under control in a large number of countries. Following the lifting of lockdowns demand had surged and by early November this year it hit a peak. That forced the US to pressurise The Organisation of the Petroleum Exporting Countries (OPEC) to raise the production and the OPEC meeting held on December 2 agreed to boost the production moderately.
Following that, the volatile market had stabilised to some extent. However, Omicron variant of Covid 19 has brought volatility to the market again and it seems that oil market will continue to be volatile in the coming days.
