The omicron variant appears to have worrisome vaccine resistance and increased transmissibility, according to preliminary data.
Oil prices fell on Monday, weighed down by concerns about oil demand given the advance of the omicron variant of Covid-19 and sanitary restrictions.
Around 0910 GMT, the price of a barrel of North Sea Brent for February delivery was down 5.11% to $ 69.79, and West Texas Intermediate (WTI) for January was down 5.67% to $ 66.84 .
Since his first appearance in South Africa in November, the omicron variant of COVID-19 has been identified in dozens of countries, forcing several to reimpose travel restrictions and other measures.
Although it does not appear to be more severe than the delta variant – which is still the dominant strain -, the mutated omicron appears to have a worrying resistance to vaccines and increased transmissibility, according to preliminary data.
“For crude, it’s all about demand concerns right now,” Fawad Razaqzada, an analyst at ThinkMarkets, told AFP.
“Travel restrictions have been throughout most of Europe and there is a possibility that more measures will be announced in the coming days,” he added.
“Investors have no choice but to sell oil, as well as stocks in the energy and travel sectors,” he concluded. (I)
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