oil and gas

Some suppliers are better placed for a l...
January 21, 2021
Brax: Gasoline and fuel oil are availabl...
January 16, 2021
Maersk secures well UK contract for Maer...
January 16, 2021

oil and gasDecember 23, 2020

Oil prices decline as new coronavirus strain affects demand


Oil prices fell on Tuesday as a new strain of coronavirus detected in the United Kingdom increase worries over fuel demand recovery.

The new strain is believed to be 70% transmissible, its widespread has shut down Britain and made a lot of countries close their borders to British travellers.

Brent crude futures were down 54 cents, or 1.1% to $50.37 a barrel at 05:31 GMT while US West Texas Intermediate (WTI) crude futures fell 59 cents, or 1.2%, to $47.38 a barrel.

Both benchmarks declined by 3% on Monday, affecting gains made due to COVID-19 vaccine roll out.

Stephen Innes, chief market strategist at Axi said, 'the nightmare before Christmas scenario has set in, with a combination of the 'mutant virus' compounded by Brexit angst.'

US dollar is rising serving as a safe-haven currency, however, a US-dollar priced oil is not appealing for buyers using other currencies. That has also affected oil prices.

Investors are waiting for US crude inventory reports to determine the near-term market.

gulftoday